Bank of Mexico Governor Refuses to Recognize Bitcoin as ‘Money’

The adoption of bitcoin as a legal tender by El Salvador earlier this week has led to uproar and protests in the country.

Mexico’s central bank chief said on Thursday that bitcoin is more like a medium of exchange of things than the developed fiat money. He called it a risky investment and a wasteful option to store value.
Comments from Bank of Mexico Governor Alejandro Diaz de León suggest that Mexico will not yet take the path of El Salvador in adopting digital currency as a legal tender at the same level as fiat money.

Diaz de Leon said, “Whoever takes bitcoin in exchange for a commodity or a service, we consider it to be a transaction because that person is exchanging goods for goods.” But in reality it is not money for the thing.” bitcoin price in india 36.60 lakh on September 11.

“In our time, money has evolved into fiat money issued by central banks,” he said. “Bitcoin daily looks more like a dimension of precious metals than legal tender.” The Bangkok boss argued that a cryptocurrency To be considered as ‘money’, it must be a reliable method of payment. He added that even bitcoin will need to safeguard its value.

The adoption of bitcoin as a legal tender by El Salvador earlier this week has faced problems that have pushed down the value of the digital currency globally. Earlier this week El Salvador became the first country in the world to make bitcoin legal tender along with the US dollar. However, this rollout faced serious problems. To control the large number of people joining the platform, the government had to temporarily suspend its cryptocurrency app Chivo to add more servers and increase capacity.

Bitcoin has been very volatile in the past. It rose to over $64,000 (approximately Rs 47 lakh) in April and fell to around $30,000 (approximately Rs 22 lakh) in May.

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