Published
2 years ago on
February 17, 2022
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El Salvador’s President Nayib Bukele asked US senators to stay out of the country’s internal affairs after a group of them introduced legislation centered around El Salvador’s BTC policy.
Bill To Study BTC Law
The legislation for the Accountability for Cryptocurrency in El Salvador (ACES) was introduced by Senators Jim Risch (R-Idaho), Bob Menendez (D-N.J.), and Bill Cassidy (R-La), and mandates a State Department report on El Salvador’s BTC policy.
The report would need to gather key information about El Salvador’s decision-making process behind the BTC legalization. Additionally, it will also include information about how the Bitcoin law affects the Salvadorean people and businesses, the extent to which the people are actually using the crypto, and the country’s capability to handle cybersecurity risks. Finally, the report will also need contextual information regarding El Salvador’s unbanked population and the remittance flow rate from the US into the country. In other words, the report would actively look into the economic and commercial relationship between the two countries by exploring the potentially decreasing use of the USD by El Salvador and any possibility of evading US sanctions by using cryptocurrency.
In a press statement, Senator Risch said,
“El Salvador’s adoption of Bitcoin as legal tender raises significant concerns about the economic stability and financial integrity of a vulnerable U.S. trading partner in Central America. This new policy has the potential to weaken U.S. sanctions policy, empowering malign actors like China and organized criminal organizations.
Mitigating Risks To US Economy
Furthermore, the proposal also includes a caveat that can be made actionable to counter potential risks to the US financial system.
The bill reads:
"Not later than 90 days after the submittal of the report required by subsection 19 (a), the Secretary of State, in coordination with the heads of other relevant Federal departments and agencies, shall submit to the appropriate committees of Congress a plan to mitigate any potential risk to the United States financial system posed by the adoption of a cryptocurrency as legal tender in El Salvador; and any other country that uses the United States dollar as legal tender."
President Bukele Claps Back
The news of this proposed legislation has not gone over well with the pro-Bitcoin president of El Salvador. He did not mince any words in expressing his disdain towards the Senators, as he addressed them as “boomers” over the old-school approach taken by them.
He tweeted,
“OK boomers…You have 0 jurisdiction on a sovereign and independent nation. We are not your colony, your back yard or your front yard. Stay out of our internal affairs. Don’t try to control something you can’t control.”
Traditional financial institutes, like Fitch and the IMF, have heavily criticized El Salvador’s Bitcoin Law. However, crypto industry experts and proponents are rooting for El Salvador’s daring move to break free from the shackles of the USD.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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