The President of the Bank of Mexico, Alejandro Díaz de León, rejected Bitcoin (Bitcoin) As a reliable legal tender, it is believed that price fluctuations are the main obstacle to full adoption.
Governor Díaz de León said in Reuters interview Compared with the fiat currency of the central bank, Bitcoin’s position in today’s financial system is similar to “a dimension of precious metals.”
In stark contrast to the mainstream Bitcoin adoption in El Salvador is Businesses accepting Bitcoin payments, The governor of the Bank of Mexico questioned the status of Bitcoin as a viable legal tender:
“No matter who receives Bitcoin in exchange for goods or services, we think (transaction) is more akin to bartering, because that person is exchanging goods for goods, not money for goods.”
Díaz de León also highlighted the inherent risks of daily price fluctuations when dealing with cryptocurrencies. Coincidentally, just a day later, the Salvadoran government witnessed this risk. Recognize Bitcoin as legal tender with Purchase the first batch of 200 Bitcoins worth 10.4 million USD At the time of purchase.
El Salvador’s President Naib Bukler took the opportunity to announce Buy more bitcoins during the fall, Holding a total of 550 BTC.According to President Booker, this move Saved his government “a million sheets of printing paper.”
The Governor of the Bank of Mexico pointed out that payment execution and value require reliability, and pointed out that “people don’t want their purchasing power or wages to rise or fall by 10% every day. You don’t want such fluctuations in purchasing power. In this sense, it Not a very good value guarantee.”
As Cointelegraph reported on June 28, the authorities of the Mexican Ministry of Finance issued Warnings issued by institutions Related to digital currency, highlighting the risks associated with payment and value fluctuations.
The regulator also stated that no financial institution in the country is authorized to “use virtual assets to conduct and provide business to the public,” including Bitcoin and Ether (Ethereum), with Ripple.