Bank of Mexico Governor Alejandro Díaz de León rejected the notion that Bitcoin (BTC) could ever become a legal tender in the country, citing the price volatility as a huge obstacle to adopting for that purpose.
In a recent interview with Reuters, Governor Díaz de León said that Bitcoin’s position in today’s financial system is more comparable to that of precious metals than to fiat money distributed by central banks.
In stark contrast to El Salvador’s adoption of Bitcoin, whose government required local merchants to accept payments in BTC, Díaz de León does not think cryptocurrency is usable as legal tender:
“When someone receives Bitcoin in exchange for a good or service, we think the transaction is comparable to bartering, because that person has exchanged one good for another good, not money for a good.”
Díaz de León also highlighted the inherent risk represented by the extreme volatility of cryptocurrencies: a feature exploited to its advantage by the Salvadoran government which, after officially recognizing Bitcoin as legal tender, invested 10 million dollars in the asset during the recent dip.
The governor of the central bank of Mexico stressed the need for the currency to be stable in terms of both value and payment execution:
“People don’t want their purchasing power, their salary, to go up and down by 10% overnight. You don’t want this kind of purchasing power volatility. In that sense, it’s not. a good store of value. “
Related: Mexico may not follow El Salvador’s example on Bitcoin… for now
Mexican authorities recently issued a warning against the country’s financial institutions, reminding them that they cannot by law handle cryptocurrencies.
Risk Disclosure: The articles and articles on Arover.net do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies.