Credit: RawBeautyPixels/Adobe
El Salvador’s adoption of bitcoin as legal tender has raised concern among American lawmakers, who are calling for a risk report on the potential impact on bilateral economic ties and law enforcement cooperation.
Last month, US Senators Jim Risch and Bob Menendez reintroduced a bipartisan bill calling for a State Department report on El Salvador’s Bitcoin adoption.
The bill, dubbed the Accountability for Cryptocurrency in El Salvador (ACES) Act, was originally introduced in February last year.
American lawmakers want an analysis of Bitcoin adoption in El Salvador and the risks to cybersecurity, economic stability and democratic governance in the country.
In a Foreign Relations Committee blog post, Risch expressed concern about the impact of El Salvador’s move to make Bitcoin legal tender, claiming that it could weaken economic and financial stability. He added:
“Given the US interest in prosperity and transparency in Central America, we must seek greater clarity on how the adoption of Bitcoin as legal tender may affect El Salvador’s financial and economic stability, as well as El Salvador’s ability to prevent money laundering and illicit activities fight finance effectively.”
El Salvador continues to double down on its Bitcoin strategy
El Salvador made headlines in 2021 when it became the first country to make bitcoin legal tender.
Since then, the country has continued its Bitcoin push, with President Nayib Bukele buying large amounts of the cryptocurrency.
In mid-November, Bukele even announced that he would be buying one bitcoin a day starting November 18.
Currently, the country is estimated to have about 2,381 BTC worth about $65 million acquired at an average price of $43,357.
Bukele’s Bitcoin experiment has been praised in the cryptocurrency world but criticized by institutions such as the International Monetary Fund and the World Bank.
Recently, El Salvador also welcomed Saifedean Ammous, a prominent economist and author of The Bitcoin Standard, as economic adviser to its National Bitcoin Office (ONBTC), an entity that manages all cryptocurrency-related affairs in the country.
El Salvador’s National Bitcoin Office was founded in late 2022 by President Nayib Bukele in collaboration with well-known bitcoiners Stacy Herbert and Max Keiser.
Meanwhile, reports of bitcoin adoption in the small Central American country have been mixed, indicating adoption is slow.
According to the government, cryptocurrencies account for less than 2% of all remittances to El Salvador.
Remittances, mostly from expatriate Salvadorans, are an important source of income for the country.
In fact, for the same reason, the government promised that BTC would offer more options and convenience to those sending and receiving remittances.
The country has even launched a dedicated BTC app, largely designed to facilitate BTC transfers from abroad. However, data from last year showed that only two in 10 people who originally downloaded the app still use it.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.