Digital assets are dangerous: says Bank of Mexico governor

Bitcoin (BTC) is not a convenient electronic currency for trading, according to the head of the Mexican Central Bank. According to him, this has no real value. He believes that digital currencies do not have the same values ​​as other currencies and that they are closer to precious metals than to currencies.

A high risk investment

Contrary to what supporters of Bitcoin (BTC) everything is not a scalable currency, insisted Alejandro Diaz de Léon , the governor of Bank of Mexico.

“Anyone who receives Bitcoins in exchange for a good or service, we think this (transaction) is more like barter , because this person is exchange a good for a good, but not really money for a good, “ said the banker.

He also added that digital currencies represent a high risk investment and a bad store of value. Sir. Leon This is coming at a time when many countries are taking important steps to enable digital currency payments. The country that tops the list among these countries is El Salvador, which has definitely introduced BTC into its financial system.

People won’t want their wages to drop by 10%

Outside of El Salvador, Panama is exploring the possibility of making BTC e-money legal. Even though Mexico also appeared to be in favor of such a project, the country will surely have to revisit its plans due to the governor’s latest remarks. In his statements, the latter also said: “Bitcoin is more like a dimension of precious metals than a daily legal tender.

According to the governor, for BTC to have any chance of being legal tender, it still has to prove itself and preserve its value . Indeed, like other digital assets, it experiences high volatility and its values ​​oscillate uncontrollably, which makes it unsuitable for use as a means of payment, considers the governor. (Read also: US Treasury wants official stable currency verification)

“People will not want their purchasing power, their salary to increase or decrease by 10% overnight. You don’t want that volatility for purchasing power. In this sense, it is not a good protection of the value ”.

As many countries take steps to include cryptocurrencies in their economic arsenal, Mexico appears to be taking a step backwards. Indeed, the governor of the Bank of the country explained that according to him digital assets are dangerous.