The echoes of El Salvador’s Bitcoin move continue. Another comment on the move came from leading asset manager Fidelity. Fidelity’s Jurrien Timmer argued that the event was exaggerated because the dollar still dominates.
The legislation officially went into effect on September 7, three months after the country announced that it would accept Bitcoin as a legal currency. While the crypto community drew attention to the importance of the move and that other countries could make a similar move, a different comment came from Fidelity executive Jurrien Timmer.
Jurrien Timmer, executive director of Fidelity Investments, recently spoke to CNBC. movement “new and interesting Timmer described it as a “development” “a bit overrated” He said he believed. Timmer used the following statements on the subject:
“El Salvador has not left the US dollar as a peg – the currency has not switched from the dollar to Bitcoin as a peg… It still has dollars and people can decide to get paid in dollars. So it’s basically a voluntary thing.”
Timmer also pointed out that Bitcoin is used here as a medium of exchange, not a store of value. “first test” he warned. As is known, this may cause some problems due to scalability problem.
Timmer’s comment is not the first criticism of El Salvador. The country had previously received criticism from institutions such as BIS, Moody, and some economists for its Bitcoin move.
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