Bank of Spain criticized El Salvador’s Bitcoin law

Bank of Spain criticized El Salvador’s Bitcoin law
Bank of Spain criticized El Salvador's Bitcoin law 2

The central bank of Spain pointed out mistakes of the El Salvador government to adopt Bitcoin as a legal tender.

On 7 September, El Salvador created history officially through bitcoin law to mandate all the businesses to accept Bitcoin mode payments through the Chivo wallet. But all this happened with huge controversy & criticism and still haters are hating Bitcoin law of El Salvador directly and indirectly over time.

Read also: Majority of Salvadoran have Bitcoin wallet over Bank account 

In the latest, the bank of Spain released a report on the Bitcoin adoption, entitled “The role of crypto assets as legal tender: the example of El Salvador”.

Sergio Gorjón is the author of this report. Sergio is General Directorate of Operations, Markets and Payment Systems. 

Published report Pointed two main mistakes that, El Salvador government made to implement bitcoin law. 

According to the report, the first mistake of El Salvador was lack of transparency. According to the Bank of Spain, El Salvador should give better clarity on the bitcoin law. 

“The opacity and lack of consensus with which the project has been carried out has been another limiting factor. Thus, the main global rating agencies agreed to carry out a downward revision of El Salvador’s sovereign credit rating”

The second point, that the Bank of spain raised is, to force businesses to accept Bitcoin payment through Chivo wallet. This point was raised by the Ethereum Co-founder Vitalik Buterin. 

Related: Ethereum Creator describes El Salvador’s Bitcoin law “reckles”

The Bank of Spain agreed with the statement of Vitalik. According to Vitalik, El Salvador introduced Bitcoin law without spreading the knowledge about Bitcoin that can increase the chances of scam and cyber crime with the Bitcoin wallet users. 

The bank of Spain report pointed out the Digital awareness of The El Salvador, which is at bottom in the central American countries and stated

“With just over 50% of its population with Internet access and a market share of smartphones that barely reaches 40%, El Salvador is at the bottom of the Central American countries in terms of the level of digital training”

Perhaps, there was one thing about the Bitcoin law of El Salvador, which was praised by the Bank Of Spain. According to the central bank, the laws to protect to Monetary system and policies to avoid money laundering, El Salvador’s Bitcoin law is good.

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