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Mexico central bank Chief says bitcoin is barter, not money

The chief of Mexico’s central bank thinks that bitcoin is barter, not a proper currency.

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Photo By "Business Today.In"

Mexico’s central bank chief said on Thursday that bitcoin is more like a means of barter, that it is just an ‘evolved’ fiat money. He further called it a high-risk investment. According to him, bitcoin has poor store value.

Bank of Mexico Governor Alejandro Diaz de Leon said that Mexico would not follow the steps of El Salvador anytime soon. There is no plan of adopting a digital currency as the country’s parallel legal tender.

He further said, “Whoever receives bitcoin in exchange for a good or service, we believe that (transaction) is more akin to bartering because that person is exchanging a good for a good, but not money for good.”

He said that in their time, money has evolved to the fiat money that the central bank issues. Bitcoin is more like the dimension of a very costly and precious metal than a regular daily legal tender.

The Banxico boss further argued that if we want to consider crypto as money, then it needs to be reliable as a payment method. He further added that bitcoin needs to safeguard its one value.

He further pointed out that the value of cryptos has often seen some rapid signs in a single day. He further said, “People will not want their purchasing power, their salary to go up or down 10% from one day to another. You don’t want that volatility for purchasing power. In that sense, it is not a good safeguard of value.”

This unprecedented adoption of bitcoin in El Salvador has been facing some problems. It has made its contribution to a rout in the value of digital currency on a worldwide scale. Bitcoin has been very volatile. In April it went up to the mark of $64000. On the other hand, it has fallen low to almost the mark of $30000 in May. It is currently trading at the mark of $47179.04.

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