- El Salvador and Bitcoin. The U.S. sees a threat
- The response of El Salvador
- Риск потери рычага давления
Recently, U.S. Senators Jim Risch, Bob Menendez, and Bill Cassidy have introduced the Accountability for Cryptocurrency in El Salvador (ACES). Based on this legislation, the State Department would be required to report on mitigating potential risks to the country’s financial system that are related to the use of Bitcoin as legal tender in El Salvador.
The bill has been proposed due to the active policy of El Salvador concerning cryptocurrencies.
“El Salvador recognizing bitcoin (BTC) as official currency opens the door for money laundering cartels and undermines U.S. interests. If the United States wishes to combat money laundering and preserve the role of the dollar as a reserve currency of the world, we must tackle this issue head on,” said Bill Cassidy.
If this bill is passed, the State Department would be asked to analyze a list of issues related to El Salvador and Bitcoin, including remittance flows from the United States to El Salvador, steps taken by both countries and other international players to fight international crime, and the scenario in which El Salvador could cut the use of the U.S. dollar.
President Nayib Bukele, a proponent of Bitcoin who initiated its adoption as legal tender, instructed the American senators to stay out of El Salvador’s affairs.
“Ok boomers… You have 0 jurisdiction on a sovereign and independent nation,” he wrote in a tweet, referring to the U.S. senators as older “baby boomers”.
He added, “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.”
The president’s bravery certainly inspires respect. He has not directly struck back at the economic giant but has taken a firm stance. Obviously, by talking about “risks to the U.S.” the Americans are bound to get on the nerves of people all over the world. Sometimes, the egocentric behavior of the United States is simply preposterous.
El Salvador became the first country that has adopted crypto as legal tender, alongside the U.S. dollar. This decision has attracted fierce criticism from the IMF.
The senators have also stated that the use of crypto by El Salvador could reduce the strength of the American sanctions and contribute to an increase in crime.
”This new policy has the potential to weaken U.S. sanctions policy, empowering malign actors like China and organized criminal organizations. Our bipartisan legislation seeks greater clarity on El Salvador’s policy,” the senators wrote in their statement.
Since September, the government of El Salvador has purchased about 1,801 Bitcoins. This policy has been criticized by the opposition and economists because the government has refused to bear responsibility for the process of funds acquisition and management.
Diplomatic tensions between the two countries have heightened after the U.S. openly criticized the corruption in El Salvador and the accumulation of power by Bukele’s government.