Bank of England’s Bailey voices concerns over El Salvador Bitcoin acceptance

What

Bank of England Governor Andrew Bailey has spoken out against El Salvador’s use of Bitcoin as a national currency

Why

He believes the average citizen of El Salvador will not be sufficiently informed about the volatility and fundamentals of cryptocurrencies

What next

El Salvadorʼs president, Nayib Bukele, intends to build the worldʼs first “bitcoin city” powered by a volcano and financed by bitcoin bonds

The story

Governor of the Bank of England Andrew Bailey has voiced his concerns over El Salvador adopting Bitcoin as a national currency.

Speaking before the Cambridge University student union, Bailey said: “It concerns me that a country would choose it as its national currency… What would worry me most of all is, do the citizens of El Salvador understand the nature and volatility of the currency they have?”

The International Monetary Fund (IMF) has also come out against El Salvador’s decision, stating that Bitcoin as a legal tender ‘entails significant risks to consumer protection, financial integrity, and financial stability.’

El Salvador’s President Nayib Bukele was quick to rebuke the opinions of Governor Bailey, writing on Twitter: ‘“Bank of England is ‘worriedʼ about El Salvadorʼs adoption of bitcoin? Really? I guess Bank of Englandʼs interest in the well-being of our people is genuine. Right? I mean, they have always cared about our people. Always. Gotta love Bank of England.”

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