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El Salvador’s adoption of bitcoin as legal tender poses challenges for the network, JPMorgan says

A demonstrator holds up a sign against the government's bitcoin law during a LGBT community Pride parade on June 26, 2021 in El Salvador. APHOTOGRAFIA/Getty Images El Salvador's decision to adopt bitcoin as legal tender poses some systemic risks for the country and the digital asset's blockchain, according to JPMorgan.Doubt remains about whether the bitcoin blockchan can practically handle a significant fraction of payment activity were it to become widely used, a team of economists including Steven Palacio, Ben Ramsey, and Joshua Younger wrote in a note published Thursday.Bitcoin trading volumes commonly exceed between $40-50 billion a day, most of this activity is internalized by major exchanges, they said, adding that on-chain transactions have averaged around $10 billion dail...