The US Senate considers the risks of adopting Bitcoin (BTC) in El Salvador

US Senate meddling in El Salvador’s affairs

Following the warning of the American Under-Secretary of State last July, three US senators of opposing parties tabled a bill on February 15 to analyze the risks associated with the adoption of Bitcoin (BTC) by El Salvador.

The document was proposed by senators from the Republican Party Jim Risch and Bill Cassidy and by the senator of the democratic movement Bob Menendez under the name of “Accountability for Cryptocurrency in El Salvador” or “ACES Act”.

Basically, this bill calls for a report from the State Department regarding “ the degree of use of cryptocurrencies in El Salvador, but also on the risks of piracy involved, the way in which funds are secured and an analysis of the population in order to determine what proportion of unbanked Salvadorans can have access to Bitcoin and under what conditions.

Beyond questions of security, it would seem that the American senators are above all concerned of a potential abandonment of the American dollar in favor of Bitcoin. Indeed, it is written black on white in the bill:

“The legal report must include the following elements: […] El Salvador’s economic and trade relations with the United States and the possibility that El Salvador use US dollars less. […] A plan to limit the risks posed by the adoption of cryptocurrencies in certain countries vis-à-vis the United States. »

👉 To read on the same subject: Senator Ted Cruz bought Bitcoin (BTC) during the recent drop

A project badly received by Nayib Bukele

Such a report could be similar to US interferenceinsofar as it requires data on the population of El Salvador, an analysis of the country’s relations with the International Monetary Fund (IMF) and the World Bank, and questions ” the possibility of using cryptocurrencies to circumvent US sanctions. »

According to Senator Jim Risch, the risk of destabilization of the American financial system is sufficient to require this report:

“This new policy has the potential to weaken US sanctions policy, as it empowers malign actors like China and organized crime. Our legislation calls for light on El Salvador’s policy and requires the administration to mitigate potential risk to the US financial system. »

The news was very poorly received by Nayib Bukelethe president of El Salvador, who reacted strongly from his Twitter account, saying that his country was independent:

“Okay boomers… You have no right to a sovereign and independent nation. We are not your colony, your backyard or your garden. Stay out of our internal affairs. Don’t try to control something beyond your control. »

If the project is adopted, the American Secretary of State will have 60 days to submit the report so requested.

El Salvador holds firm

A figurehead in the adoption of Bitcoin, El Salvador is constantly being put in the way. The IMF, for example, has recently threatened to deny him loans if he didn’t give up bitcoin. The organization has never hidden its concern about the adoption of cryptocurrencies, citing in particular “the risk of cryptoisation” for emerging countries just over 2 weeks ago.

However, the Republic of El Salvador is holding firm and continuing to grow Bitcoin among its people. Last July, she notably put forward the idea of creation of a stablecoin backed by the dollarbefore announcing earlier this year that it would provide Bitcoin loans to small businesses.

At the beginning of the month, the Paxful cryptocurrency exchange platform chose El Salvador to set up its Bitcoin education center to facilitate its adoption among surrounding populations.

👉 To go further: The governor of Colorado proposes the payment of taxes in cryptocurrencies

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About the Author : Maximilien Prue

Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make the blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
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