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Bitcoin Comment by the Head of the Central Bank of Mexico

Comment about Bitcoin has been made by the head of the Central Bank of Mexico. The Governor said that Bitcoin is a product of exchange.

Bitcoin Comment by the Head of the Central Bank of Mexico
Yazar: Eylem Özer

Yayınlanma: 12 Eylül 2021 14:59

Güncellenme: 23 Kasım 2024 06:49

Bitcoin Comment by the Head of the Central Bank of Mexico

Comment about Bitcoin has been made by the head of the Central Bank of Mexico. The Governor said that Bitcoin is a product of exchange.

The Governor of the Central Bank of Mexico, in a statement, claimed that Bitcoin is not an advanced currency. Noting that BTC is nothing more than a weak store of value and a high-risk investment, the Governor stated that Mexico will never make it legal. Governor Alejandro Diaz de Leon, using expressions downplaying the importance of Bitcoin in the financial world, said that he likened it to barter trading: “We believe that whoever buys Bitcoin for a good or service is more like a barter, because that person is exchanging a good for a good, but not actually paying for a good.” In June, the bank issued a statement with the Finance Ministry reminding Mexicans that “cryptocurrency assets are not a legal currency in Mexico and are not currency under the current legal framework.” According to the report published by Reuters, the Banxico Governor did not change his mind about BTC even after it became the legal currency in El Salvador. Governor said: "Money in our time has turned into fiat money issued by central banks. Bitcoin is more like a dimension of precious metals than daily legal tender." Criticizing the currency features of Bitcoin, Diaz de Leon stated that for any instrument to be accepted as a currency, it must be a reliable payment method and Bitcoin does not currently have these features. Stating that Bitcoin, which has a constant volatile price, is not usable, the Governor said: "People aren't going to want their purchasing power, their salary to go up or down 10% from one day to the next. You don't want that volatility for purchasing power. In that sense, BTC is not a good value protection."
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