Wednesday, September 29, 2021
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Central Bankers Target BTC After Flash Crash By

© Reuters. – Still struggling to recover from the losses in Tuesday’s flash crash. This event once again demonstrated the high volatility of bitcoin, one of its most criticized properties, particularly by central banks.

In this context, it is worth noting that the governor of the Riksbank, Stefan Ingves, spoke on this matter yesterday. He said there were doubts about the sustainability of Bitcoin, the world’s largest digital asset, if there was no government protection.

“Private money usually fails sooner or later,” said Ingves at a recent banking conference in Stockholm.

The central banker said that with the growing popularity of cryptocurrencies like Bitcoin, regulators are in a tight spot.

The governor of the Mexican central bank, Alejandro Diaz de Leon, also spoke up. He said on Thursday that Bitcoin was more of a medium of exchange than legal tender. He called Bitcoin a poor store of value and pointed to its extreme volatility.

“If someone receives a good or a service for Bitcoins, in our opinion it is more of an exchange transaction, because this person exchanges a good for a good, but not really money for a good,” Reuters quoted Diaz de Leon.

“People will not want their purchasing power, their salaries, to rise or fall by 10 percent from one day to the next. You don’t want that volatility for purchasing power. In this context, it is anything but a good store of value, ”said the Mexican central banker.

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Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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