The governor of the Financial institution of Mexico, Alejandro Díaz de León, dismissed Bitcoin’s (BTC) place as a dependable authorized tender, citing worth volatility as a serious roadblock in direction of full-fledged adoption.
Governor Díaz de León stated in a Reuters interview that Bitcoin’s place in at present’s monetary system resembles “a dimension of treasured metals” when in comparison with the central financial institution’s fiat cash.
In stark distinction to El Salvador’s mainstream Bitcoin adoption that requires businesses to accept payments in Bitcoin, Mexico’s central financial institution chief questioned Bitcoin’s place as a viable authorized tender:
“Whoever receives bitcoin in change for a superb or service, we imagine that (transaction) is extra akin to bartering as a result of that particular person is exchanging a superb for a superb, however probably not cash for a superb.”
Díaz de León additionally highlighted the inherent danger of every day worth volatility when coping with cryptocurrencies. Coincidently, the Salvadoran authorities was a witness to this danger simply someday after recognizing Bitcoin as a legal tender and buying its first 200 BTC worth $10.4 million on the time of buy.
Profiting from the state of affairs, El Salvador’s President Nayib Bukele introduced the purchase of more Bitcoin during the dip, leading to a complete holding of 550 BTC. In line with President Bukele, this move saved his administration “one million in printed paper.”
Mexico’s central financial institution governor identified the necessity for reliability when it comes to cost executions and worth stating “folks won’t need their buying energy, their wage to go up or down 10% from someday to a different. You do not need that volatility for buying energy. In that sense, it isn’t a superb safeguard of worth.”
As Cointelegraph reported on June 28, authorities from Mexico’s finance ministry issued a warning against institutional offerings associated to digital currencies, highlighting dangers associated to funds and worth fluctuation.
The regulators have additionally stated that no monetary establishments within the nation are licensed “to hold out and supply to the general public operations with digital belongings,” together with Bitcoin, Ether (ETH), and XRP.