Mexico Bank governor says Bitcoin can’t take position of legal tender

The governor of the Bank of Mexico described Bitcoin as a precious metal but dismissed the Bitcoin to use as a legal tender. 

After El Salvador adopted bitcoin as a legal tender, many countries’ bank authorities are sharing their statement on Bitcoin to adopt as a legal tender. Most of them are calling it an asset instead of any currency. 

Alejandro Díaz de León, The governor of the Bank of Mexico, talked about Bitcoin in an interview with Reuters. 

According to Alejandro, Bitcoin is just like a precious metal and we can’t use it as a legal tender. He also further said that most of the people are exchanging Bitcoin with other assets or currency, not with goods. So how can we say that Bitcoin is a currency? 

“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 really money for a good.”

So according to Alejandro, Currency is that thing which can be used to buy goods and services but here Bitcoin failed. 

Alejandro further talked about the volatility in the price of Bitcoin. And called it a risky thing if we deal with crypto. 

Here it is a coincidence that El Salvador, where Nayib Bukele bought 200 Bitcoins and after the crash in the price again bought more Bitcoins to make the price average. ( More matching with the statement of Governer).

Read also: El Salvador buys first 200 BTC, President Bukele confirms

Further, the Mexican bank governor said that people want reliability in terms of payment executions. If people will get a salary in Bitcoin then surely there are chances that within a day the salary will go up or down by 10%.

Here all the points of Governor are right but here Governor is not giving support to the Nayib bukele effort to adopt bitcoin and make it available only to use for payment purposes. And doesn’t bind any person to hold or take salary in Bitcoin.

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