The Bank from Spain made a warning about the policy implemented by The Savior regarding the adoption of Bitcoin as legal tender, through a document released by the financial institution on its web portal this past October 13, 2021.
According to the financial institution, the monetary policy implemented by the Latin American country could compromise the integrity of the financial system in El Salvador. One of the main concerns of the Bank of Spain, is related to the relative lack of transparency required by the project, points out that almost forcing the adoption of Bitcoin, in an untrained population and without knowledge of cryptocurrencies is somewhat risky, as highlighted the newspaper Contribune in its digital edition of yesterday Wednesday.
The regulatory body of monetary policy in Spain points out that the market’s capacity to develop and satisfy the needs of users, as well as to design innovative products around crypto assets, is unknown.
The Bank of Spain points out the overcoming of certain technical barriers as other challenges,since the population of El Salvador, which has internet access is around more than 50%; while in the smartphone market, it is only 40%. This places them at the bottom of the Central American countries for digital training.
It remains to be seen what measures are taken by public assistance programs, designed by the government and other institutions aimed at accelerating the migration of users to the digital environment, whether or not it achieves the expected success.
The Bank of Spain estimates that it could be necessary to impact an eventual loss in the last resort, on the population when paying taxes.
On the other hand, the download and installation of wallets Digital faced a number of practical difficulties, including its omission from several major mobile app stores. To this, various configuration problems were added, which, finally, resulted in the interruption of the supply of the wallets until a solution was found to the lack of capacity of the servers.
On the other hand, El Salvador has announced that it will make a regulatory effort in order to reduce concerns about the use of Bitcoin for money laundering or terrorist financing and to be rigorous on the issue of controls to face these risks.
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