El Salvador Bitcoin move will put pressure on network: JPMorgan
Daily payment activity in El Salvador would represent more than 1% of the total value of BTC that has been transferred among wallets in the past year, JPMorgan experts say.
American megabank JPMorgan has continued criticizing El Salvador’s 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 Steven Palacio released a report suggesting that El Salvador adopting BTC as legal tender could put a strain on the Bitcoin network, Bloomberg reported Sunday.
The use of Bitcoin as legal tender in a country like El Salvador will potentially put a significant limitation” on Bitcoin’s capability JPMorgan experts noted, pointing to the cryptocurrency’s illiquidity and trading nature.
“Daily 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,” they said.