{"id":8180,"date":"2021-06-13T01:54:09","date_gmt":"2021-06-13T01:54:09","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/bitcoinization-jpmorgan-notes-similarly-situated-countries-could-make-bitcoin-legal-tender-like-el-salvador\/"},"modified":"2021-06-13T01:54:09","modified_gmt":"2021-06-13T01:54:09","slug":"bitcoinization-jpmorgan-notes-similarly-situated-countries-could-make-bitcoin-legal-tender-like-el-salvador","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/bitcoinization-jpmorgan-notes-similarly-situated-countries-could-make-bitcoin-legal-tender-like-el-salvador\/","title":{"rendered":"Bitcoinization: JPMorgan Notes \u2018Similarly Situated\u2019 Countries Could Make Bitcoin Legal Tender Like El Salvador"},"content":{"rendered":"

JPMorgan struggles to \u201csee any tangible economic benefits associated with adopting bitcoin as a second form of legal tender.\u201d Commenting on El Salvador\u2019s bitcoinization, JPMorgan did not rule out that the country\u2019s move to make the cryptocurrency legal tender may be \u201cthe beginning of a broader trend among similarly situated, smaller nations.\u201d<\/strong><\/p>\n

JPMorgan\u2019s Opinion on Bitcoinization in El Salvador<\/h2>\n

Investment bank JPMorgan released a report<\/a> Friday titled \u201cThe Bitcoinization of El Salvador.\u201d The country\u2019s congress passed the bill<\/a> making bitcoin legal tender on Wednesday, becoming the first nation to do so.<\/p>\n

JPMorgan described: \u201cEl Salvador recently passed legislation making bitcoin legal tender, and will attempt to implement a bimonetary system with the U.S. dollar as the primary unit of account but mandating bitcoin be accepted as payment for all economic activity.\u201d<\/p>\n

The investment bank added that \u201cAs with dollarization in the early-2000s, this move does not seem motivated by stability concerns, but rather is growth-oriented,\u201d elaborating:<\/p>\n

It is difficult to see any tangible economic benefits associated with adopting bitcoin as a second form of legal tender, and it may imperil negotiations with the IMF.<\/p>\n

The International Monetary Fund (IMF) has already voiced concerns<\/a> regarding El Salvador\u2019s move to make bitcoin legal tender, citing legal and economic issues. El Salvador is currently seeking a billion-dollar loan from the IMF.<\/p>\n

An official with the Bank of International Settlements (BIS) has also expressed doubt in El Salvador\u2019s bitcoin law, calling it an \u201cinteresting experiment<\/a>,\u201d but emphasizing that the BIS does not see that bitcoin can function as a means of payment.<\/p>\n

<\/p>\n

The JPMorgan report further points out that there are questions as to how bitcoin will be treated by larger economies when it is legal tender in El Salvador. The bank warned that any treatment changes \u201cwould arguably be an unintended consequence of laws and regulations that significantly predate, and understandably did not anticipate cryptocurrency.\u201d Nonetheless, the bank said:<\/p>\n

Those moves may be complicated if this is the beginning of a broader trend among similarly situated, smaller nations.<\/p>\n

After El Salvador passed the bill to make bitcoin legal tender, President Nayib Bukele said the country will be mining BTC<\/a> using energy from volcanoes<\/a>. He said it will be \u201cvery cheap, 100% clean, 100% renewable, 0 emissions energy from our volcanos.\u201d<\/p>\n

Do you think other countries will follow El Salvador\u2019s example and make bitcoin legal tender? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nNews, BIS, bitcoin legal tender, bitcoinization, El Salvador, imf bitcoin legal tender, jpmorgan, jpmorgan bitcoin legal tender, jpmorgan bitcoinization, jpmorgan el salvador<\/p>\n","protected":false},"excerpt":{"rendered":"

JPMorgan struggles to \u201csee any tangible economic benefits associated with adopting bitcoin as a second form of legal tender.\u201d Commenting on El Salvador\u2019s bitcoinization, JPMorgan did not rule out that the country\u2019s move to make the cryptocurrency legal tender may be \u201cthe beginning of a broader trend among similarly situated, smaller nations.\u201d JPMorgan\u2019s Opinion on…<\/p>\n","protected":false},"author":0,"featured_media":8181,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-8180","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/8180"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=8180"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/8180\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/8181"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=8180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=8180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=8180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}