{"id":3964,"date":"2021-06-13T09:47:27","date_gmt":"2021-06-13T08:47:27","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=3964"},"modified":"2021-06-13T09:50:43","modified_gmt":"2021-06-13T08:50:43","slug":"el-salvadors-bitcoinisation","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/el-salvadors-bitcoinisation\/","title":{"rendered":"El Salvador’s Bitcoinisation: It is Difficult to See Any Tangible Economic Benefits Associated With Adopting Bitcoin – JP Morgan"},"content":{"rendered":"\n
The investment bank, JPMorgan does not seem to buy the bitcoinisation move from El Salvador <\/a>and believes that it is difficult to see any tangible economic benefits associated with adopting bitcoin as a second form of legal tender.<\/h5>\n\n\n\n
\"El<\/figure>\n\n\n\n

JPMorgan pointed that the country\u2019s move to make bitcoin a legal tender may stir up the interest of similar smaller nations towards bitcoin adoption as a legal tender.<\/p>\n\n\n\n

JPMorgan\u2019s Comment on El Salvador's Bitcoinisation\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

A popular investment bank, JPMorgan, in a recent report which was released on Friday titled \u201cThe Bitcoinisation of El Salvador.\u201d The country\u2019s congress passed the bill making bitcoin legal tender on Wednesday, becoming the first nation to do so.<\/p>\n\n\n\n

JPMorgan stated: <\/p>\n\n\n\n

\u201cEl Salvador recently passed legislation making bitcoin legal tender, and will attempt to implement a bimonetary system with the U.S. dollar as the primary unit of account but mandating bitcoin be accepted as payment for all economic activity.\u201d<\/p><\/blockquote><\/figure>\n\n\n\n

The investment bank also mentioned in its statement that<\/p>\n\n\n\n

\u201cAs with dollarization in the early-2000s, this move does not seem motivated by stability concerns, but rather is growth-oriented,\u201d <\/p><\/blockquote>\n\n\n\n

further expressing that:<\/p>\n\n\n\n

It is difficult to see any tangible economic benefits relating to bitcoin adoption as a second form of legal tender, and it may endanger financial negotiations with the IMF.<\/p><\/blockquote>\n\n\n\n

The International Monetary Fund (IMF) has already voiced concerns regarding El Salvador\u2019s move to make bitcoin legal tender, citing legal and economic issues. El Salvador is currently seeking a billion-dollar loan from the IMF.<\/p>\n\n\n\n

The Bank of International Settlements (BIS) in a recent statement also expressed doubt in El Salvador\u2019s bitcoin law<\/a>, calling it an \u201cinteresting experiment,\u201d but emphasizing that the BIS does not see that bitcoin can function as a means of payment.<\/p>\n\n\n\n

The JPMorgan report further points out that there are questions as to how bitcoin will be treated by larger economies when it is legal tender in El Salvador. The bank warned that any treatment changes \u201cwould arguably be an unintended consequence of laws and regulations that significantly predate, and understandably did not anticipate cryptocurrency.\u201d Nonetheless, the bank said:<\/p>\n\n\n\n

Those moves may be complicated if this is the beginning of a broader trend among similarly situated, smaller nations.<\/p>\n\n\n\n

After bitcoin was passed as a legal tender, El Salvador President Nayib Bukele said the country will start mining BTC using energy from volcanoes. He said it will be <\/p>\n\n\n\n

\u201cvery cheap, 100% clean, 100% renewable, 0 emissions energy from our volcanos.\u201d<\/p><\/blockquote><\/figure>\n","protected":false},"excerpt":{"rendered":"

The investment bank, JPMorgan does not seem to buy the bitcoinisation move from El Salvador and believes that it is difficult to see any tangible economic benefits associated with adopting bitcoin as a second form of legal tender. JPMorgan pointed that the country\u2019s move to make bitcoin a legal tender may stir up the interest […]<\/p>\n","protected":false},"author":12,"featured_media":3967,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[83],"tags":[152,478,456,476,477],"class_list":["post-3964","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin","tag-bitcoin-as-a-legal-tender","tag-el-salvador","tag-jp-morgan","tag-legal-tender"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2021\/06\/El-Salvadors-Bitcoinisation-It-is-Difficult-to-See-Any-Tangible-Economic-Benefits-Associated-With-Adopting-Bitcoin-JP-Morgan.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/3964","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=3964"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/3964\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/3967"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=3964"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=3964"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=3964"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}