J.P. Morgan Chase, a major US bank, has poured cold water on El Salvador’s decision to officially monetize Bitcoin. This was reported on the 11th (local time) by YouTube.
The most recent note points out that “it is difficult to see any tangible economic benefit from the adoption of Bitcoin.”
“A country’s decision to adopt Bitcoin as a second fiat currency could jeopardize negotiations with the International Monetary Fund (IMF) over a bailout,” the bank added.
Additionally, JPMorgan asserts that “Bitcoin could affect the way it is handled in economies of scale that are much larger than El Salvador.”
The IMF noted that El Salvador’s major Bitcoin bill was passed by a majority earlier this week, raising legal and financial issues.
The law marked a big moment in the Bitcoin revolution, but it could also make it more difficult for the country to get a $1.3 billion loan from the IMF.
However, Benoît Cœuré of the Bank for International Settlements described the Bitcoin adoption bill as an “interesting experiment.”
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Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.