Benoit Coeure, an official of the Bank for International Settlements (BIS) and a former member of the Executive Committee of the European Central Bank (ECB), insisted that Bitcoin has not yet passed the test of becoming a means of payment. He called El Salvador’s move to make cryptocurrency legal tender “an interesting experiment.”
BIS officially doubts whether Bitcoin can be used as a payment method in El Salvador
Benoit Coeure, head of the Innovation Center at the Bank for International Settlements (BIS), commented on El Salvador’s move to make Bitcoin a legal tender on Friday. He said at the launching ceremony of the Supervisory Research Center of the Bank of England (BoE):
El Salvador, this is indeed an interesting experiment.
As a member of the BIS Executive Committee, Benoit Coeure was appointed as the head of the bank’s innovation center in 2020. He was previously a member of the Executive Committee of the European Central Bank (ECB). From 2013 to 2019, he served as the chairman of the BIS Payments and Market Infrastructure Committee.
On Wednesday, the Salvadoran Congress passed a bill to make Bitcoin legal tender, becoming the first country in the world to use Bitcoin and the U.S. dollar as its national currency. The country is currently exploring the use of volcanic energy for mining.
We have made it clear at BIS that we believe that Bitcoin has not passed the test as a means of payment. Bitcoin is a speculative asset and should be regulated.
BIS officials are not the only ones expressing concerns about Bitcoin becoming legal tender in El Salvador. The International Monetary Fund (IMF) stated on Thursday that “the adoption of Bitcoin as legal tender will raise a series of macroeconomic, financial and legal issues.”
At the same time, many countries, including the United States, are increasing their supervision of cryptocurrencies. This week, financial regulators in major economies proposed additional capital rules for banks holding crypto assets.
What do you think of Benoit Coeure’s comments on Bitcoin in El Salvador? Let us know in the comments section below.
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