UN Commission issues new warning on El Salvador’s adoption of BTC

The Economic Commission for Latin America and the Caribbean (ECLAC) is the United Nations regional committee to encourage economic cooperation. It is the latest regulatory agency and expressed concern about El Salvador’s decision to accept Bitcoin.Bitcoin) As legal tender.

ECLAC Executive Secretary Alicia Bárcena warned that El Salvador’s Bitcoin initiative has brought many systemic risks and risks related to money laundering. Local news agency Diario El Mundo Report Friday.

Barsena emphasized that there is currently no research investigating the potential risks or benefits of El Salvador’s acceptance of BTC as legal tender. She expressed belief that El Salvador may face the review and risks of the Financial Action Task Force (FATF) regarding its decision to switch to Bitcoin.

The official added that Bitcoin does not have some of the basic functions of a currency and is vulnerable to extreme fluctuations, which may bring “multiple systemic risks” to the dollarized economy.

related: Survey finds that most Salvadoran citizens are skeptical about making BTC a legal tender

In issuing the warning, ECLAC joined more and more global authorities and organizations, who are increasingly worried about El Salvador’s decision to adopt BTC as legal tender after the President of El Salvador. Nayib Bukele announces historic legislation Early June.The International Monetary Fund was one of the first regulators to later draw attention to this matter and warned of accepting Bitcoin as the country’s legal tender. May cause legal and financial issues.

June 17, World Bank rejects El Salvador’s request Seeking to help the country transition to adopting Bitcoin, citing issues related to Bitcoin’s alleged environmental impact and transparency. Earlier today, Alexei Zabotkin, deputy governor of the Central Bank of Russia, also expressed concern about El Salvador’s Bitcoin initiatives. debate Large economies are unlikely to respond to the country’s call to adopt BTC as a legal tender, as this will pose risks to financial stability.