Wednesday, October 27, 2021

Mexican central bank’s head says Bitcoin is akin to barter trade and is unfit for use as a currency.

The Takeaway:

The original cryptocurrency Bitcoin is akin to barter trade and is unfit for use as a currency, the head of the Mexican central bank has said.

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Bitcoin is akin to barter trade and is unfit for use as a currency, the head of the Mexican central bank has said, noting that cryptocurrencies lack the values that all currencies must possess and are more similar to precious metals than they are to currencies. Several countries have taken a positive approach towards crypto recently.

 

“Bitcoin is not evolved money as its proponents have touted.” 

Bitcoin is not evolved money as its proponents have touted, Alejandro Diaz de Leon, the governor of the Bank of Mexico, stated recently. “Whoever receives bitcoin in exchange for a good or service, we believe that (transaction) is more akin to bartering because that person is exchanging a good for a good, but not really money for good,” the central bank’s head said. In addition, cryptocurrencies are a high-risk investment and a poor store of value, he added. His statement comes at a time when several countries are thinking of recognizing cryptocurrencies. 

 

Money has to be issued by a trusted entity like a central bank. 

The biggest was by El Salvador, whose Bitcoin Law mandating BTC payments took effect this week. Panama is also exploring a similar path, although it doesn’t intend on forcing citizens to accept digital currency payments. Given the governor’s latest remarks, such a move may not be in the offing for Mexico. The governor further pointed out that money has to be issued by a trusted entity, such as a central bank. “Bitcoin is more like a dimension of precious metals than daily legal tender,” he added. If it’s to stand a chance of ever becoming legal tender globally, Bitcoin must become a reliable payment method and also safeguard its value. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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