JPMorgan Says El Salvador May Face Restrictions in Using BTC

by in Cryptocurrency News

El Salvador JPMorgan

Global investment bank JPMorgan finds El Salvador may face difficulties with Bitcoin's use cases as a means of exchange.

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In a report published on Thursday, the bank said the difficulties may appear, as lots of BTC is tied up in illiquid institutions, 90% of the owners remained the same through a year. According to the bank's analysts, the daily payment activity in El Salvador is about 4% of the volume of transactions on the network. The share of the entire transferred on-chain value barely exceeded 1%, the report said.

Thus, JPMorgan there is a vital limitation on Bitcoin's potential as a means of exchange.

On June 8, El Salvador officially [recognized] BTC as a means of trade, becoming the first country to do so. The country’s President Nayib Bukele's move wasn't accepted in the same way. There are people who don't agree Bitcoin must have that status.

El Salvador's Bitcoin law is set to begin functioning from September 7.

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A survey carried out recently showed that around 46% of Salvadorans don't know what Bitcoin was.