The Reaction of the President of El Salvador to US Interference
Since the implementation of the Bitcoin Law by the government of El Salvador in 2021, governments around the world, as well as some of the world’s most prominent financial institutions, have expressed significant opposition to cryptocurrencies, including bitcoin.
In response to the latest proposal made by a bipartisan group of senators, including Republican Senators Jim Risch and Bill Cassidy and Democratic Senator Bob Menendez, the president of the Republic of El Salvador reacted sharply.
According to him, the United States has no authority over a sovereign and independent nation.
He also called on Senate members not to meddle in the internal affairs of other countries.
According to Cassidy, El Salvador’s Bitcoin Law will aid money laundering cartels and be detrimental to US national interests.
The Bill of Rights is a set of rights guaranteed by the United States Constitution.
According to Risch, El Salvador’s use of Bitcoin as legal tender raises major concerns about the country’s economic stability and financial integrity, particularly given the country’s status as a “critical US trading partner” in the Central American area.
It is argued by the Senator that El Salvador’s new policy will have the “potential to weaken” US sanctions efforts, therefore favoring detrimental actors such as China and organized crime groups. He went on to say,
Specifically, “our bipartisan plan calls for greater clarity on El Salvador’s policies and advises the administration to handle any financial system risk in the United States.”
Following passage of the bill by Congress, federal agencies will have 60 days to submit a report to the appropriate committees of Congress examining various aspects of El Salvador’s technical capability.
Among the topics covered in the report are the steps taken by Salvadorean policymakers to develop and enact the Bitcoin Law, as well as an evaluation of the regulatory framework, including how it would address financial integrity and cyber security risks associated with virtual currencies, as well as whether the law complies with FATF standards.
Furthermore, the impact on individuals and businesses, as well as the impact of the economy on Bitcoin’s status as a legal money, will be discussed.
The study would also look into a number of other potential ramifications for El Salvador’s macroeconomic stability as well as the state’s fiscal situation. Unbanked population, influx of remittances from the United States, contacts with international financial institutions, bilateral economic and commercial ties with the United States, potential depreciation of the dollar in El Salvador, to name a few considerations
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