Senators introduce legislation to report on El Salvadors Bitcoin adoption. President Nayib Bukele tells boomers to stay out.
The U.S. senators introduced legislation requiring a State Department report on:
- An analysis of El Salvador’s adoption of Bitcoin as legal tender and the risks for cybersecurity, economic stability, and democratic governance in El Salvador.
- A plan to mitigate potential risks to the U.S. financial system.
The president of El Salvador Nayib Bukele faced a lot of institutional criticism since the introduction of Bitcoin as legal tender. Today U.S. Senators Jim Risch, Bob Menendez and Bill Cassidy introduced new legislation requiring the State Department to report on El Salvador’s adoption of Bitcoin as legal tender and a plan on risks mitigation for the U.S. financial system.
Bitcoin causes mOnEy LAuNdEriNg
“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. Our bipartisan legislation seeks greater clarity on El Salvador’s policy and requires the administration to mitigate potential risk to the U.S. financial system.” said Risch.
“El Salvador recognizing Bitcoin as official currency opens the door for money laundering cartels and undermines U.S. interests,” said Dr. Cassidy. “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.”
These steps are a clear sign that El Salvador and president Bukele are now perceived as a possible threat to the US system. So far El Salvador was has benefited from the decision to make Bitcoin legal tender but the political pressure is mounting.
Bukele did not hold back in his response on Twitter:
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 😉
It is to be seen if El Salvador can successfully fund and manage its volcano mining operation and realize the plans for a Bitcoin City but I wish the Bitcoin Holy Land good luck in the David vs Goliath fight!