The Economic Commission for Latin America and the Caribbean, or ECLAC, a United Nations’ regional commission to encourage economic cooperation, is the latest regulator to raise concerns about El Salvador’s decision to accept Bitcoin (BTC) as legal tender.
ECLAC executive secretary Alicia Bárcena has warned that El Salvador’s Bitcoin move poses a number of systemic risks as well as risks related to money laundering, local news agency Diario El Mundo reported Friday.
Bárcena emphasized that there is no study yet that would have investigated potential risks or benefits of El Salvador accepting BTC as legal tender. She expressed confidence that El Salvador is likely to face scrutiny and risks from the Financial Action Task Force, or FATF, regarding its decision to move into Bitcoin.
The official added that Bitcoin does not fulfill some basic functions of money and is subject to extreme volatility, which could pose “multiple systemic risks” in a dollarized economy.