Concerns Raised by US Senators Over Bitcoin Use in El Salvador
Concerned American senators have demanded a risk study on the possible effect on bilateral economic ties and law enforcement cooperation after El Salvador accepts Bitcoin as legal currency.
Senators Jim Risch and Bob Menendez submitted a bipartisan measure requiring a State Department report on Bitcoin usage in El Salvador last month.
Legislators in the United States are interested in learning more about the implications of Bitcoin use in El Salvador on the country’s cybersecurity, economy, and democratic government.
Risch voiced his concerns in a blog post for the Foreign Relations Committee that adopting Bitcoin as legal cash in El Salvador might undermine economic and financial stability.
Since then, President Nayyib Bukele has been a major Bitcoin buyer, and the nation has maintained its Bitcoin campaign.
Bukele even said in the middle of the month that, beginning November 18, he would purchase one Bitcoin daily.
There are now an estimated 2,381 BTC in the nation, with a total market value of $65 million at the current price of $43,357 per coin.
The Bitcoin community has lauded Bukele’s Bitcoin experiment, while the IMF and World Bank have been critical.
El Salvador’s National Bitcoin Office (ONBTC), which oversees all cryptocurrency-related activities in the nation, has welcomed Saifedean Ammous, a notable economist and author of “The Bitcoin Standard,” as an economic adviser.
In late 2022, President Nayib Bukele of El Salvador and well-known Bitcoiners Stacy Herbert and Max Keiser established the National Bitcoin Office.
Meanwhile, conflicting reports regarding Bitcoin’s reception in the tiny Central American nation have suggested a sluggish adoption rate.
The government has often said that BTC would facilitate more accessible and faster remittance transactions.
To help with international BTC remittances, the country’s government has even released a specialised BTC app. However, last year’s statistics indicated that just 2% of original app downloaders still use it this year.