JPMorgan has offered its view on the bitcoinization of El Salvador, the country which recently made bitcoin legal tender alongside the U.S. dollar. JPMorgan says, “It is difficult to see any tangible economic benefits associated with adopting bitcoin as a second form of legal tender.”
JPMorgan on the Bitcoinization of El Salvador
JPMorgan & Chase’s Latin American research team published a report titled “The Bitcoinization of El Salvador” Thursday. El Salvador recently passed legislation making bitcoin legal tender alongside the U.S. dollar.
The JPMorgan analysts who authored the report wrote:
It is difficult to see any tangible economic benefits associated with adopting bitcoin as a second form of legal tender.
The report also points out that “Recent surveys suggest widespread skepticism and hesitance of bitcoin as a medium of exchange … with extreme volatility posing a particularly acute challenge in a bimonetary system alongside official dollarization.”
JPMorgan noted that bitcoin’s daily trading volumes often exceed $40 billion to $50