UK CB’s Governor Is Concerned About El Salvador’s BTC Policy

by in Cryptocurrency News

Bank of England governor

Andrew Bailey, the governor of the Bank of England expressed concerns related to El Salvador's Bitcoin legalization.

Related: CB of Canada sees no threat to the economy from cryptos

According to a report by Bloomberg, during the Cambridge University student union on November 25, the governor said he is worried that El Salvador would choose Bitcoin as its national currency despite the volatile nature of the coin. He added that the most worrying thing is whether citizens of the country understand the nature and volatility of the currency they hold.

In September 2021, El Salvador became the first country to accept bitcoin as legal tender, according to the decision by the country's president Nayib Bukele. The move has been widely discussed. The World Bank rejected El Salvador's request to help with Bitcoin processing. Later, various international financial organizations criticized the status of the largest crypto as a legal tender in El Salvador, saying it presents economic issues.

Ethereum co-founder found that El Salvador is wrong to force businesses to accept Bitcoin. Meanwhile, Cardano founder Charles Hoskinson said that the country can help to drive massive Bitcoin adoption. Colombian politician Gustavo Pedro also supported Bukele saying that Colombia would also benefit if it legalized BTC.