The US State Department will present a report on the presence of Bitcoin in El Salvador in two months. President Bukele believes that the US government does not defend freedom and that Bitcoin is money.
One hundred US senators are preparing to pass a bill that will allow investigating many topics about El Salvador and Bitcoin. These will include remittances sent from the US, efforts to combat illicit activities, monetary policy, and the finances of Salvadorans.
The Committee on Foreign Relations of the US Senate approved the Accountability for Cryptocurrency in El Salvador (ACES) Act. In February, Republican senators James Risch, Bill Cassidy, and Democrat Bob Menéndez introduced the bill.
The argument to consent to the law is to protect the financial system of the United States. They fear that the adoption of Bitcoin as legal tender in El Salvador could affect them.
After the approval in the Senate became public knowledge, President Nayib Bukele did not hesitate to respond to the United States through Twitter.
Bukele Reacts on Twitter, Saying the US Government Is Afraid of Him
Salvadoran President Nayib Bukele expressed on Twitter that he did not imagine the US government would be afraid of what he was doing. In addition, he stated that the United States does not defend freedom while El Salvador does, as Bitcoin is money.
Republican Senator Bill Cassidy, a proponent of the ACES Act, recently tweeted that Salvadorans living in the US do not accept the policies of Bukele. The US official commented that they might not trust a president who boasts about trading Bitcoin naked.
The US Department of State Would Present a Report within Two Months
There is still no definitive date for the vote on the legislative proposal in the plenary session of the US Senate. However, after the approval of the ACES Act, the State Department must prepare a report on the presence of Bitcoin in El Salvador. They seek to include a plan to reduce the potential risks for the financial system of the North American country.
Senator James Risch, another proponent of the law, said that the policy of El Salvador could weaken US sanctions. He added that this would empower malign actors like China and organized criminal organizations.
For that reason, the report must show the impact of the adoption of Bitcoin on the macroeconomic stability and public finances of El Salvador. In addition, they would review the state of law, democracy, and governance in the Central American country.
They must also analyze the effects of the adoption of Bitcoin on the flow of remittances from the United States and the relationship with international financial institutions. The US State Department is due to present the report within two months.
Some analysts consider that this law does not impose anything on El Salvador since its effects only fall on the US government. The latter would be in charge of reporting on the alleged risks of adopting Bitcoin in the Central American country for his nation.
However, Nayib Bukele sees the project as an intrusion into his sovereignty. Furthermore, he stressed that US senators do not have jurisdiction in El Salvador and cannot control its national politics.
By Alexander Salazar
