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Bitcoin Is Not Money, Says Bank Of Mexico’s Governor

Bitcoin is emerging as a strong asset class. It has been both criticized and praised by many. In its 10 years since inception, Bitcoin has been called a scam, a bubble – but in recent years many have also showered accolades like “Digital Gold.” 

In a recent statement, Mexico’s top banking institution, Bank Of Mexico’s governor, has shared his opinions about the use of Bitcoin. Governor Díaz de León said that Bitcoin is akin to  “a dimension of precious metals” when it is pitted against the fiat currency issued by the country’s central bank. 

The Bank of Mexico Governor completely dismissed the idea that Bitcoin can qualify as a successful legal tender. He showed concerns about the extreme price volatility and said that it will hinder Bitcoin’s path to mass adoption. 

In his interview with Reuters, he also questioned El Salvador’s move to make Bitcoin a legal tender. “Whoever receives bitcoin in exchange for a good or service, we believe that (transaction) is more akin to bartering because that person is exchanging a good for a good, but not really money for a good,” he argued. 

He pointed out that there are many risks associated with Bitcoin. Taking a jibe at the El Salvadoran government he said that they already faced it when they purchased 200 BTC worth $10.4 million and the price dropped soon after. The Governor also expressed the importance of reliability in payments which he said is crucial for Businesses. 

The Governor of Mexico is not alone in criticizing Bitcoin and questioning its use as a legal tender. Even many in El Salvador believe that it is not the right move. A survey says that over 70% are not happy with the government’s decision. However, El Salvador’s President believes that it will bring economic prosperity and investments. 

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