The Bank of England Governor Andrew Bailey has raised concerns about the decision by El Salvador to make bitcoin a legal tender, terming the crypto as too volatile.
Governor Bailey says that El Salvador’s consumers were bound to suffer and that the decision was alarming. He questioned whether Salvadorians understood the nature of BTC price fluctuations.
Bailey says that the Bank of England was looking at the viability of launching a Central Bank Digital Currency, saying it is more stable compared to cryptocurrencies.
Bitcoin surged to a high of $68,000 on November 9 from $43,000 after the decision by the Central American nation but has since retraced to under $55,000.
BoE comments echo that of its Deputy Governor Sir Jon Cunliffe, who declared that CBDC revolutionizes the functionality of money despite skepticism among the Britons.