Good day everyone,
I hope you are all well and had an excellent week, welcome to CryptoGod-1’s blog on all things crypto. Today I will be looking at the news that two US Senators have reintroduced a bipartisan bill requesting the State to look into how EL Salvador has fared since their introduction of Bitcoin as legal tender.
Bipartisan Bill - Here We Go Again
US Senators Jim Risch and Bob Menendez have reintroduced a bipartisan bill requesting a State Department report on El Salvador’s Bitcoin adoption. There is general concern among the Senators regarding the risk on the potential impact on bilateral economic relations and law enforcement cooperation between the United States and El Salvador following the Central American nations adoption of Bitcoin as legal tender. The bill is known as the Accountability for Cryptocurrency in El Salvador (ACES) Act, which was originally introduced in February of 2022.
The American lawmakers want the analysis on El Salvador to include the risks for cybersecurity, economic stability, and democratic governance in the country. Senator Risch expressed his concern regarding the implications of El Salvador's move to adopt Bitcoin as legal tender in a blog post in the Foreign Relations Committee. He believes it could weaken economic and financial stability. Within the post he noted:
“Given U.S. interest on prosperity and transparency in Central America, we must seek greater clarity on how the adoption of Bitcoin as legal tender may impact El Salvador’s financial and economic stability, as well as El Salvador’s capacity to effectively combat money laundering and illicit finances."
EL Salvador Doubles Down on Bitcoin
While other nations may still be questioning the impacts of Bitcoin as legal tender, El Salvador is doubling down on its policy and unrelenting in its belief that Bitcoin is the way forward. Back in 2021 it made Bitcoin legal tender, and in the process became the first nation to do so. President Nayib Bukele has continued purchasing Bitcoin since then, with the country estimated to own about 2,381 Bitcoin, or $65 million worth. The average price paid has been about $43,357, with the current price of Bitcoin sitting around $25,500.
The cryptocurrency world was in awe and full of praise for the President's efforts, but institutions like the International Monetary Fund and the World Bank showed their dismay at what they considered reckless financials of the nation. The nation promised that by using Bitcoin it would provide more options and greater convenience for those sending and receiving remittances, which has become a major source of income for the nation from El Salvadorians abroad sending money back home.
Have a great day.
Peace. CryptoGod-1.
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