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Bank of Spain Criticizes El Salvador’s Foray Into Bitcoin

bank of spain

The Bank of Spain was the central bank of Spain and criticised El Salvador’s adoption process when it declared Bitcoin legal tender. The Bank of Spain, the central bank of the country, has published a report entitled “The role crypto assets as legal tender: El Salvador’s example” and discusses the difficulties the country faced while using its bitcoin strategy. It also raises questions about the transparency of some actions taken.

Bank of Spain Examines El Salvador’s Bitcoin Bet

The Bank of Spain issued a report scrutinizing and reflecting upon the entrance of El Salvador into the Bitcoin world. Sergio Gorjon, General Directorate of Operations, Markets and Payment Systems, wrote the report titled “The role of cryptocurrency assets as legal tender. The example of El Salvador”. It stated that El Salvador, as any first-mover, made many mistakes in the implementation of Bitcoin.

The relative lack of transparency that the project has shown is one of the main concerns of the Bank of Spain. The report states

Another limiting factor was the indecisiveness and lack of consensus that the project was carried out. The major global rating agencies agreed that El Salvador’s sovereign credit rating would be lowered.

Other Issues Found

The Bank of Spain discovered other problems with El Salvador’s decision to move toward Bitcoin. The institution agreed with the opinion of Vitalik Buterin, co-founder of Ethereum, who stated that virtually forcing Bitcoin on an untrained, non-crypto-savvy population was risky. The Bank of Spain stated:

With just over 50% of its population with Internet access and a market share of smartphones that barely reaches 40%, El Salvador is at the bottom of the Central American countries in terms of the level of digital training.

The bank thanked El Salvador for taking steps to address concerns about bitcoin being used for terrorist financing or money laundering. According to the bank, the country’s regulation addresses these issues in detail and allows for stronger control measures.

What do you think about the Bank of Spain’s opinion on El Salvador? Please leave your comments below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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XCN defies Bitcoin and Ethereum slump with 97% spike

Onyxcoin (XCN) has risen 97% in the past 24 hours as altcoins enjoy massive buying pressure. The XCN price bucks the trend that saw Bitcoin and Ethereum down after notable gains a day earlier. Tariffs and other market conditions weigh on investor sentiment. Onyxcoin (XCN) has defied a dip for Bitcoin, Ethereum, and top altcoins…


  • Onyxcoin (XCN) has risen 97% in the past 24 hours as altcoins enjoy massive buying pressure.
  • The XCN price bucks the trend that saw Bitcoin and Ethereum down after notable gains a day earlier.
  • Tariffs and other market conditions weigh on investor sentiment.

Onyxcoin (XCN) has defied a dip for Bitcoin, Ethereum, and top altcoins with an impressive 97% over the past 24 hours.

In a price rally that put it on top of the daily gainers’ list, XCN shot up to an intraday high of $0.017.

The performance bucks the downward pressure that has seen Bitcoin (BTC) and Ethereum (ETH) pare gains from a day ago with dips below $80k and $1.5k, respectively.

XCN price performance

The XCN token’s standout performance sees it outpace Flare, Kaspas, and Walrus, among other notable gainers.

According to data from CoinMarketCap, XCN is currently trading at $0.017, with its volume up 1,230%.

XCN chart by CoinMarketCap

The token’s market, though tiny at $531 million, is up 97% and puts Onyxcoin in the top 100 by market cap.

XCN has flipped Floki and CORE, which currently rank 100th and 99th by market cap, respectively.

Onyxcoin’s massive spike comes despite a broader risk market downturn in the past 24 hours.

BTC, ETH, and other coins’ dip has seen the global cryptocurrency market cap drop by 3.9% to $2.52 trillion.

Volume is down 20% to about $127 billion as crypto mirrors losses on Wall Street.

Overall market outlook

Crypto and the stock market rose sharply on Wednesday after US President Donald Trump changed his tariffs stance.

His announcement of a 90-day pause sent risk assets skyrocketing, with Bitcoin’s price breaking to above $82k.

S&P 500 and the Dow Jones Industrial jumped, rising by historic single-day gains.

However, the S&P 500 and Dow opened lower on Thursday and looked to close lower with 3.2% and 2.4 %, respectively.

Dow was down more than 900 points.

On Thursday, Trump announced an additional 25% tariff on China, bringing this to 145%.

After excluding it from the 90-day pause, analysts say the trade war will continue to hurt optimism.

This looks to be the case as stocks sold off despite the latest inflation report that showed CPI dropped to 2.4% against an expected 2.6%.

While this sees many turn to the Federal Reserve for expectations of interest rate cuts, analysts are pointing to “sticky” prices and tariff impact for likely pressure on equities and crypto. Analysts point to a potential bull trap.

Peter Schiff said via a post on X:

“I’ve never seen such a mass selloff of US assets. The US dollar, bonds, and stocks are all getting killed. I can’t remember when the dollar lost 3.5% against the Swiss franc in one day. America’s ride on the global gravy train is about to come to a screeching halt. Buckle up.”


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