While someone on the American continent promotes Bitcoin in legal tender currency (this is the case of El Salvador), someone else is holding back the enthusiasm: in Mexico, the number one of the central bank (Banxico) Alejandro Diaz de Leon, defined the crypto as one instrument of exchange, of barter, rather than something comparable to a fiat currency such as peso. Below is his statement in translated form.
For anyone who receives Bitcoin in exchange for a good or service, we believe the transaction is more like a barter, as the person is exchanging one good for another, not one good for real money. Over time, the currency has evolved to become the fiat issued by central banks. Bitcoin is more in the dimension of precious metals than something legal tender to be used on a daily basis.
Bitcoin? A medium of exchange for Banxico’s number one
The reason is primarily motivated by the volatility of cryptocurrency, subject to significant price changes in a short time, as we have also observed in recent days. An uncertainty that would inevitably affect the purchasing power of citizens in the event of an institutionalization of BTC. Nothing new, in truth, is what up to now has made the asset attractive in the eyes of those who trade for speculation purposes.
People will not want their purchasing power, their salaries, to increase or decrease by 10% overnight. They won’t want volatility in exchange for purchasing power. In this sense, it does not guarantee an adequate safeguard of the value.
At the time this article was written and published, the price of Bitcoin stands at $ 46,253 (source CoinDesk), substantially stable compared to yesterday, but down sharply compared to a few days ago when it reached $ 53,000. Far from the all-time high of mid-April at over $ 64,000.