A United Nations regulatory body cautions against El Salvador's Bitcoin adoption plan

A United Nations regulatory body cautions against El Salvador’s Bitcoin adoption plan

A UN council to foster financial cooperation, ECLAC, recently issued a warning against the move to legalize BTC by El Salvador. The Secretary-general of ECLAC —Economic Commission for Latin America and the Caribbean — emphasized the nonexistence of any survey to explore possible perils or usefulness concerning the legalizing of Bitcoin by El Salvador.

Earlier today, Diario El Mundo — a regional news outlet — broadcast that Alicia Barcena, the ECLAC secretary, stated that the plan to adopt BTC by El Salvador poses systemic perils and other challenges associated with financial crime. The secretary underscored the absence of any study to analyze the merits or possible challenges that may arise with the adoption of Bitcoin by the government of El Salvador. She noted, with assurance, that the Financial Action Task Force, FATF, will probably investigate and evaluate El Salvador’s BTC adoption plan. She also acknowledged that BTC lacks some primary qualities of money and is highly exposed to volatility.

Many world regulators and groups have raised concern regarding the Bitcoin adoption after Nayib Bukele, the president of El Salvador, disclosed last month, their BTC legalization plan. The International Monetary Fund initiated the concern over the issue, noting that Bitcoin adoption calls for legal and economic concerns.

Last month, the appeal for help by El Salvador regarding BTC approval was rejected by the World Bank due to the environmental hazard and issues of clarity associated with Cryptocurrencies. Recently, Alexey Zabotkin, the deputy governor of the Bank of Russia, asserted that due to the perils of instability, large economies would probably turn down the call to embrace Bitcoin.


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