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El Salvador’s decision to declare Bitcoin legal money in the country has elicited objections from traditional financial gatekeepers, including the Bank for International Settlements.
Bitcoin (BTC) critic and Bank of International Settlements innovation hub head Benoît Curé dubbed El Salvador’s unprecedented attempt to declare BTC legal money a “interesting experiment.”
According to Reuters, Cœuré made this assertion during the launch of the BIS’s fourth innovation hub in England on Friday, stating:
“We have been clear at the BIS that we don’t see bitcoin as having passed the test of being a means of payments. Bitcoin is a speculative asset and should be regulated at such.”
El Salvador’s parliament has enacted a measure making Bitcoin legal cash in the country, as previously reported by Cointelegraph. The parliamentary vote on President Nayib Bukele’s “Bitcoin Law” passed with an overwhelming supermajority of 62 votes out of 84.
Curé referred to Bitcoin as the “evil spawn of the  financial crisis” in November 2018. Curé’s statements regarding the need for more crypto rules are a recurring topic at the BIS, with general manager Agustn Carstens also frequently advocating for more cryptocurrency restrictions.
Curé’s remarks follow equally stern warnings from the International Monetary Fund (IMF) in the aftermath of El Salvador’s decision. In response to the announcement, the IMF noted that the decision might have serious legal and financial consequences.
Indeed, sources suggest that Bitcoin may be discussed between the IMF and El Salvador’s president as part of a planned $1 billion scheme.
The Basel Committee on Banking Supervision issued a consultation document on Thursday, categorising Bitcoin as the greatest risk. The global banking authority recommended that banks interested in crypto exposure retain $1 capital for every $1 worth of BTC maintained in custody.