JPMorgan is the latest source to respond to El Salvador’s decision to adopt Bitcoin (BTC) as legal currency within the country.
In a client note tweeted by @DocumentingBTC, the United States banking giant stated that there was little economic benefit to El Salvador adopting BTC as a parallel legal tender to the U.S. dollar.
JP Morgan on El Salvador adopting #Bitcoin
Notice the last line… pic.twitter.com/5hl0kR9WB0
— Documenting Bitcoin (@DocumentingBTC) June 11, 2021
On Thursday, El Salvador’s parliament passed a historic bill to recognize Bitcoin as legal tender. The “Bitcoin Law” bill passed by an overwhelming majority of 62 out of 84 votes.
Commenting on the move, the JPMorgan client note stated:
“As with the dollarization in the early-2000s, this move does not seem motivated by stability concerns, but rather is growth-oriented […] But 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.”
Facing a potential $3.2 billion