{"id":53617,"date":"2021-11-26T14:30:43","date_gmt":"2021-11-26T12:30:43","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=53617"},"modified":"2025-09-03T16:05:31","modified_gmt":"2025-09-03T13:05:31","slug":"bank-of-england-governor-warns-el-salvador-over-bitcoin-volatility","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bank-of-england-governor-warns-el-salvador-over-bitcoin-volatility\/","title":{"rendered":"Bank of England governor warns El Salvador over bitcoin volatility"},"content":{"rendered":"

Salvadoran citizens may be harmed by bitcoin volatility due to the authorities’ decision to legalise digital gold. Bank of England Governor Andrew Bailey expressed this view, according to Bloomberg<\/a>.<\/p>\n

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During a meeting with Cambridge University’s Students’ Union, he expressed concern about the Latin American country’s adoption of bitcoin as an official currency.<\/p>\n

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“What worries me most is whether Salvadoran citizens understand the nature and volatility of the currency they own,” Bailey stressed.<\/p>\n<\/blockquote>\n

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He added that IMF<\/span>, which monitors risks to global financial markets, is unhappy with El Salvador’s decision<\/a>.<\/p>\n

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The Bank of England is examining the possibility<\/a> of creating its own digital currency to ensure smooth online payments and provide consumers with a safe way to store money that keeps pace with technology.<\/p>\n

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“There are compelling arguments in favour of digital currencies, but in our view they must be stable, especially if used for payments. For crypto-assets, that is not the case,” said the head of the central bank.<\/p>\n<\/blockquote>\n

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The law recognizing bitcoin as El Salvador’s official monetary unit came into force on 7 September 2021<\/a>. That day the price of the cryptocurrency fell below $47,000<\/a>, after which quotes dropped to $43,000<\/a>.<\/p>\n

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During the ensuing rally, digital gold hit an all-time high<\/a> above $69,000. This occurred on November 10, and just six days later the price fell below $59,000<\/a>. On November 26, quotes breached the $55,000 level<\/a>.<\/p>\n

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Earlier, Bailey said that bitcoin “is not suitable for the world of payments”<\/a> and “has no intrinsic value”<\/a>.<\/p>\n

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Subscribe to ForkLog news on VK<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Salvadoran citizens may be harmed by bitcoin volatility due to the authorities’ decision to legalise digital gold. Bank of England Governor Andrew Bailey said this, according to Bloomberg.<\/p>\n","protected":false},"author":1,"featured_media":53618,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[216,1278,1138],"class_list":["post-53617","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bank-of-england","tag-el-salvador","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"22","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/53617","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=53617"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/53617\/revisions"}],"predecessor-version":[{"id":53619,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/53617\/revisions\/53619"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/53618"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=53617"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=53617"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=53617"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}