Central bankers say that Bitcoin is a risky investment, a poor value -added and could collapse - regulation Bitcoin News
Central bankers say that Bitcoin is a risky investment, a poor value -added and could collapse - regulation Bitcoin News
Bitcoin is a risky investment, a poor value -plaster that could collapse "Loading =" Lazy ">
Two central bank governors shared their opinion of Bitcoin after the cryptocurrency in El Salvador has become legal means of payment. The governor of the Bank of Mexico sees Bitcoin as a risky investment and a bad value preservation means, while the governor of the Swedish central bank, the Riksbank, believes that Bitcoin could collapse.
central bankers continue to warn of Bitcoin
The governors of the Bank of Mexico (Banxico) and the Swedish central bank, the Riksbank, shared their views of Bitcoin after the cryptocurrency had become Legal means of payment in el Salvador.
The governor of the Bank of Mexico, Alejandro Diaz de Leon, said on Thursday that Bitcoin was more of a medium of a barter than a Fiat money, Reuters reported and added that he called cryptocurrency "a risky investment and bad value storage". Banxico's governor is economist; He was appointed governor of the central bank by December 31 by the Mexican President. He was cited with the words:
Anyone who receives Bitcoin in exchange for a good or a service, we believe that this is more similar to a exchange business, since this person exchanges good for a good one, but not really money against a good one.
"In our time money has developed into Fiat money that is issued by central banks. Bitcoin is more of a dimension of precious metals than a daily legal means of payment," he continued.
His comments indicate that Mexico Bitcoin will not soon introduce as a national currency as El Salvador did. The Salvadorian Bitcoin law came into effect on September 7th and September btc is now in addition to the US dollar.
The head of the Bank of Mexico argued that a cryptocurrency so that it can be considered money must be a reliable payment method. However, he said that cryptocurrencies were very volatile and found that their values often fluctuate wildly every day. The governor of Banxico stated:
People will not want their purchasing power, their salary to increase or drop by one day to the other. You don't want this volatility for purchasing power. In this respect, it is not good value protection.
In the meantime, the governor of the Swedish central bank, Stefan Ingves, compared the purchase and sale of Bitcoin with trademarks. Bloomberg reported on Thursday that he commented on Bitcoin at a banking conference in Stockholm and warned that cryptocurrency could collapse.
Ingves is also an economist. Previously, he was the chairman of the Basel Committee and director of the monetary and financial systems department at the International Monetary Fund (IMF). He was cited with the words:
Private money usually collapses sooner or later. And sure you can get rich by trading with Bitcoin, but it is comparable to trading in stamps.
The governor of the Riksbank previously said that Bitcoin and other cryptocurrencies will probably not escape regulatory supervision with increasing popularity.
What do you think of the comments of the two central bankers? Let us know in the comment area below.
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