The Mexico Central Bank chief, Alejandro Diaz de Leon on Thursday said that Bitcoin is more like a means of barter than evolved fiat money.
Alejandro called Bitcoin a high-risk investment and poor store of value. The Governor’s comments on Bitcoin highlighted that Mexico will not follow El Salvador in adopting Bitcoin as a legal tender anytime soon. He further said,
Whoever received Bitcoin in exchange for a good or service we believe that transaction is more akin to bartering because that person is exchanging good for a good but not really money for a good.
Comparing precious metals and Bitcoin, he said “in our times, money has evolved to be fiat money issued by central banks, Bitcoin is more like a dimension of precious metals than daily legal tender”.
The value of digital currencies often swings wildly in a single day making them a non-reliable payment method. He also argued that Bitcoin has to safeguard its value.
The Banxico Leader commented that nobody would want their money or salary to be too volatile and go up and down one day and another. He further commented,
You don’t want that volatility for purchasing power. In that sense, it is not a good safeguard of value.
Image Credits: Susana Gonzalez/Bloomberg News
