Bank of England (BOE) Governor Andrew Bailey expressed concern over El Salvador <a href="https://www.cryptoknowmics.com/news/douglas-rodriguez-of-el-salvador-says-bitcoin-adoption-not-an-obstacle-in-loan-agreement-with-imf/">adopting</a> Bitcoin (BTC) as a legal tender considering the risks related to the cryptocurrency. This comes just days after President Nayib Bukele announced plans to build a “Bitcoin City.”
<h2 class="article-header__title">Bank of England Governor Concerned Over Bitcoin Being Legal Tender in El Salvador</h2>
<a href="https://www.bloomberg.com/news/articles/2021-11-25/boe-chief-says-el-salvador-s-move-to-adopt-bitcoin-concerning?utm_source=twitter&amp;utm_medium=social&amp;utm_campaign=socialflow-organic&amp;utm_content=crypto" target="_blank" rel="nofollow noopener">Speaking</a> at the Cambridge University student union on Thursday, BoE Governor, Andrew Bailey shared his thoughts on El Salvador accepting Bitcoin (BTC) as legal tender. According to him, such a move was concerning as consumers are likely to suffer from the cryptocurrency’s extreme volatility.
<blockquote><em>“It concerns me that a country would choose it as its national currency. What would worry me most of all is, do the citizens of El Salvador understand the nature and volatility of the currency they have.”</em></blockquote>
He also questioned whether Salvadorans understand the true nature and the volatility of Bitcoin at all, adding that even the International Monetary Fund (IMF) which monitors global financial risks was not supportive of the country’s decision to accept the digital asset.

Earlier last week, the IMF released a statement outlining the “significant risks” arising from Bitcoin as a legal tender in El Salvador. The regulatory agency previously released a similar warning in June but that didn’t stop the country from adopting BTC as a legal tender in September.
<h2><strong>BOE Supportive of CBDCs</strong></h2>
Despite being a staunch critic of the flagship cryptocurrency, Bailey was supportive of central bank digital currencies (CBDCs). He further revealed that the Bank of England was also considering whether to launch its own digital currency payments system.
<blockquote><em>“There is a strong case for digital currencies, but in our view, it has to be stable, particularly if it’s being used for payments. That is not true for crypto assets.”</em></blockquote>
El Salvador legalized bitcoin in September, becoming the first in the world to officially declare it legal tender. <a href="https://www.cryptoknowmics.com/news/infrastructure-being-built-for-el-salvadors-bitcoin-adoption-nayib-bukele/">President Nayib Bukele</a>’s government claims this will give many Salvadorans access to bank services for the first time and save some $400 million in fees on remittances sent home from abroad every year.

Bank of England Governor Concerned Over Bitcoin Adoption in El Salvador

Bank of England Governor Andrew Bailey expressed his concerns over El Salvador adopting Bitcoin (BTC) as a legal tender.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Bank of England Governor Concerned Over Bitcoin Adoption in El Salvador

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