“Bitcoin’s Volatility Is Already There, Volatility Is Very High”: BCR Chief

Central Reserve Bank President Douglas Rodriguez acknowledged Tuesday in a TV interview with Channel 10 that the cryptocurrency is very volatile, so its value does not stay in time.

“The volatility in Bitcoin if it is there, there is very high volatility, but it also happens even in the dollar so there is volatility in the best currencies as well, and there is an impact that may go down or up, not necessarily,” Rodriguez said.

According to Rodriguez, the intention of the President of the Republic, Nayib Bukele, is to regulate the use of this cryptocurrency in the country, but he stressed that it will not be mandatory for Salvadorans because they will be able to decide whether to use cryptocurrency. dollar or cryptocurrency to conduct their transactions.

“It does not mean that we will stop using the dollar to use cryptocurrencies, no, the two can converge without any conflict between the two, there is clearly a close relationship because they turned to the dollar (cryptocurrencies) and the most useful thing about this is that it will voluntarily not It is mandatory, anyone if they wish will be able to pay in bitcoin or in dollars,” Rodriguez emphasized.

Experts have warned that the hasty approval of bitcoin as a legal currency could open a rift to corruption and money laundering, two issues that Bukele himself promoted in his election campaign, as priorities for his government.

The President of El Salvador, Nayib Bukele, intervened over the weekend at the Bitcoin 2021 Forum, the largest meeting in the history of virtual currencies held in the United States, and announced an initiative to grant it legal tender in El Salvador.

The president has enough votes in Congress to approve the measure, which has sparked conflicting opinions in the Central American country.

One of the uses that arises for this encryption, according to the president, is to remit money transfers sent by Salvadorans in the United States to avoid paying commissions.

However, it has not been clarified how Salvadoran users will not pay commissions generated by the Bitcoin network itself and no further details have been provided about the initiative.