{"id":296661,"date":"2021-07-12T11:48:52","date_gmt":"2021-07-12T08:48:52","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/el-salvador-bitcoin-move-will-put-pressure-on-network-jpmorgan\/"},"modified":"2021-07-12T11:48:52","modified_gmt":"2021-07-12T08:48:52","slug":"el-salvador-bitcoin-move-will-put-pressure-on-network-jpmorgan","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/el-salvador-bitcoin-move-will-put-pressure-on-network-jpmorgan\/","title":{"rendered":"# El Salvador Bitcoin move will put pressure on network: JPMorgan"},"content":{"rendered":"<p>&#8220;<strong># El Salvador Bitcoin move will put pressure on network: JPMorgan <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDcvYzBmNWJiM2YtZmVjMC00OTc3LWI5ZDgtOTI4NmEwNGRiMDA2LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-128018ef>American megabank JPMorgan has continued criticizing El Salvador\u2019s declaration of Bitcoin (BTC) as legal tender, warning of the potential risks for both the country and the cryptocurrency.<\/p>\n<p>A JPMorgan expert group led by economist Steve Palacio released a report suggesting that El Salvador adopting BTC as legal tender could put strain on the Bitcoin network, Bloomberg <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-07-11\/jpmorgan-says-el-salvador-move-could-strain-bitcoin-blockchain?sref=3REHEaVI\">reported<\/a> Sunday.<\/p>\n<p>The experts said that Bitcoin is highly illiquid, noting that most Bitcoin trading volumes are internalized by major exchanges, with more than 90% of Bitcoin not changing hands in more than a year.<\/p>\n<p>The use of Bitcoin as legal tender in a country like El Salvador will potentially put a \u201csignificant limitation\u201d on Bitcoin\u2019s capability to serve as a medium of exchange, JPMorgan experts noted, pointing to the cryptocurrency\u2019s illiquidity and trading nature.<\/p>\n<p>\u201cDaily payment activity in El Salvador would represent 4% of recent on-chain transaction volume and more than 1% of the total value of tokens which have been transferred between wallets in the past year,\u201d they said.<\/p>\n<p>The JPMorgan experts also noted other challenges associated with El Salvador\u2019s adoption of Bitcoin as legal tender, including the potential impact on the monetary system alongside official dollarization. A continuous imbalance of demand for conversions of Bitcoin and the United States dollar could \u201ccannibalize onshore dollar liquidity\u201d and eventually introduce fiscal and balance of payments risk, the report added.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>UN commission serves new warning against BTC adoption in El Salvador<\/em><\/strong><\/p>\n<p>As previously reported, El Salvador\u2019s parliament passed a bill to recognize Bitcoin as legal tender in early June, with President Nayib Bukele stating that accepting Bitcoin would be mandatory for all businesses. A number of global financial regulators and institutions expressed skepticism over the move, with the International Monetary Fund warning of potential legal and financial consequences. JPMorgan analysts suggested that El Salvador\u2019s Bitcoin adoption could jeopardize IMF negotiations.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/el-salvador-bitcoin-move-will-put-pressure-on-network-jpmorgan\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# El Salvador Bitcoin move will put pressure on network: JPMorgan &#8221; American megabank JPMorgan has continued criticizing El Salvador\u2019s declaration of Bitcoin (BTC) as legal tender, warning of the potential risks for both the country and the cryptocurrency. A JPMorgan expert group led by economist Steve Palacio released a report suggesting that El Salvador&#8230;<\/p>\n","protected":false},"author":1,"featured_media":296662,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDcvYzBmNWJiM2YtZmVjMC00OTc3LWI5ZDgtOTI4NmEwNGRiMDA2LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74894,74863,107545,74880,74355,90059,70792,4965],"class_list":["post-296661","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-blockchain","tag-cryptocurrencies","tag-liquidity","tag-transactions","tag-adoption","tag-el-salvador","tag-jpmorgan-chase","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/296661","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=296661"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/296661\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/296662"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=296661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=296661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=296661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}