Benoit Coeure, an ex-member of the executive board of the European Central Bank (ECB) and official at the Bank for International Settlements (BIS), maintains that bitcoin has failed the test of becoming a method of payment. El Salvador’s decision to make digital currencies legal tender is an intriguing idea, he says.

Officials from the Bank of International Settlements (BIS) are skeptical about Bitcoin’s ability to function as a payment method in El Salvador

El Salvador made bitcoin legal money on Friday, according to Benoit Coeure, head of the Bank for International Settlements’ (BIS) Innovation Hub. At the Bank of England’s (BoE) opening of a regulatory research facility, he stated:

El Salvador, that is an interesting experiment indeed.

Benoit Coeure, a member of the BIS executive committee, was named head of the bank’s innovation centre in 2020. He formerly served on the European Central Bank’s executive board (ECB). He led the BIS Committee on Payments and Market Infrastructures from 2013 to 2019.

Tại sao Bitcoin có giá trị? - VnReview - Tin nóng

El Salvador’s government approved a bill making bitcoin legal currency on Wednesday, making it the first nation worldwide to do so alongside the US dollar. The government is now looking at mining with volcanoes as a source of energy.

Coeure stressed as following:

We have been clear at the BIS that we don’t see bitcoin as having passed the test of being a means of payments. Bitcoin is a speculative asset and should be regulated as such.

The representative from the BIS isn’t the only one who is concerned about bitcoin becoming legal currency in El Salvador.  “Adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues”, the International Monetary Fund (IMF) warned on Thursday.

In the meantime, numerous governments, including the United States, are stepping up attempts to regulate digital currencies. Financial authorities from major nations recommended new capital requirements for banks owning digital currencies this week.

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