US senators are concerned about the economic risks associated with the legalization of bitcoin in El Salvador. Salvadoran President Nayib Bukele asked them not to interfere in the internal affairs of the country.
US Senators Jim Risch, Bill Cassidy, and Bob Mendes have called on the US State Department to submit a report on Bitcoin legalization in El Salvador. This is necessary to assess the risks to the US economy that may arise from the actions of El Salvador.
Senators fear that other states will follow the example of this country, and the adoption of bitcoin as a means of payment may weaken the sanctions policy of the US government and create conditions for the spread of criminal organizations around the world. The initiative of the senators caused disturbance from Nayib Bukele:
“Okay baby boomers… You don’t have the power to influence a sovereign and independent nation. El Salvador is not your colony, so stay out of our internal affairs. Don’t try to control what you can’t control.”
El Salvador became the first country to legalize bitcoin and began to use it along with the US dollar. This caused sharp criticism from the International Monetary Fund (IMF), as the instability of the bitcoin exchange rate can lead to serious financial losses for users.
However, the government of El Salvador already owns about 1,801 BTC. The president is optimistic about bitcoin and recently said that it is only a matter of time before the price rises.
Last week, Salvadoran Finance Minister Alejandro Zelaya announced that a $1 billion bitcoin bond issue would take place as early as March.
Source: Bits
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
