{"id":14151,"date":"2021-11-26T16:18:24","date_gmt":"2021-11-26T15:18:24","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=14151"},"modified":"2021-11-26T16:18:34","modified_gmt":"2021-11-26T15:18:34","slug":"bank-of-englands-chief-believes-bitcoin-is-too-volatile-to-be-a-legal-tender","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/bank-of-englands-chief-believes-bitcoin-is-too-volatile-to-be-a-legal-tender\/","title":{"rendered":"Bank of England’s chief believes Bitcoin is too volatile to be a legal tender"},"content":{"rendered":"\n
The Bank of England's governor Andrew Bailey expressed reservations about El Salvador's use of Bitcoin<\/a> (BTC) as legal tender although, the bank of England promotes CBDCs as a \u201crevolution of money.\u201d<\/h5>\n\n\n\n
\"Bank<\/figure>\n\n\n\n

El Salvador's plan to use Bitcoin as a currency, according to Bailey, is concerning since consumers are likely to be harmed by the cryptocurrency's extraordinary volatility.\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a><\/p>\n\n\n\n

Bitcoin rocketed to a new record high above $68,000 on Nov. 9 after trading around $43,000 on the first day of El Salvador's adoption of Bitcoin as legal cash. Since then, the price of BTC has plummeted, with Bitcoin currently trading at $54,626 at the time of writing.<\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

According to Bloomberg, Bailey remarked at a Cambridge University student union address on Thursday, “It concerns me that a country might choose it as its official currency.”<\/p>\n\n\n\n

The governor also questioned whether Salvadorans had any understanding of Bitcoin's nature and volatility, which is his main concern.<\/p>\n\n\n\n

Bailey also mentioned a fresh statement from the International Monetary Fund <\/a>(IMF) on El Salvador, which is in charge of tracking threats to global financial systems.<\/p>\n\n\n\n

The document, which was released on Monday, identifies “serious risks” associated with Bitcoin as a legal instrument and Bitcoin trading in El Salvador.<\/p>\n\n\n\n

El Salvador's Bitcoin Law was earlier warned by the IMF in June, but it didn't stop the country from adopting it and accepting BTC as legal cash in September.<\/p>\n\n\n\n

Bailey went on to say that the Bank of England is considering launching a central bank digital currency (CBDC<\/a>), saying:<\/p>\n\n\n\n

\u201cThere is a strong case for digital currencies, but in our view, it has to be stable, particularly if it\u2019s being used for payments. That is not true for crypto assets.\u201d<\/p><\/blockquote>\n\n\n\n

The announcement comes after Sir Jon Cunliffe, the Bank of England's deputy governor for financial stability, described CBDCs as a “technology-driven revolution in the usefulness of money.”<\/p>\n\n\n\n

In an August study by Redfield & Wilton Strategies, the majority of the British adult population was doubtful and apprehensive about a prospective CBDC adoption.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Bank of England’s governor Andrew Bailey expressed reservations about El Salvador’s use of Bitcoin (BTC) as legal tender although, the bank of England promotes CBDCs as a \u201crevolution of money.\u201d El Salvador’s plan to use Bitcoin as a currency, according to Bailey, is concerning since consumers are likely to be harmed by the cryptocurrency’s […]<\/p>\n","protected":false},"author":12,"featured_media":11277,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[83],"tags":[5533,5371,5534,5535],"class_list":["post-14151","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bank-of-england-2","tag-bitcoin-2","tag-legal-tender-2","tag-volatility-2"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2021\/09\/Bank-of-England-announce-partners-for-its-CBDC-Forums.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/14151","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=14151"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/14151\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/11277"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=14151"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=14151"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=14151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}