An American official said that her country has Bitcoin and other cryptocurrencies in its sights. The use of Bitcoin as legal tender in El Salvador could attract the inflow of foreign capital.
In recent days, the US Undersecretary of Public Affairs, Victoria Nuland, spoke with Salvadoran president Nayib Bukele. The official recommended the regulation of Bitcoin when it becomes legal tender. That should happen on September 7th, when the government completely implements the Bitcoin Law, according to the France24 news agency.
After that, Nuland provided details about the suggestion that she gave to the president of the Central American nation. She told the head of state that he should regulate Bitcoin well, regardless of what El Salvador decides. She stressed that the use of the cryptocurrency had to be transparent and accountable to ensure protection against malicious actors.
The US government official told the Salvadoran head of state about the position of her country on Bitcoin. She stated that the United States had Bitcoin in its sights after the cyberattack against Colonial Pipeline.
In May, the US pipeline located in Texas became the victim of a ransomware attack. The authorities attributed the responsibility of this act to a group of hackers who call themselves DarkSide. The cybercriminals requested them to pay them with Bitcoin (BTC) or other cryptocurrencies such as Monero (XMR).
The United States Takes a Skeptical Position on Bitcoin and Other Cryptocurrencies
However, that is not the only reason why the United States is skeptical about Bitcoin and other cryptocurrencies. There are other issues related to the pioneering cryptocurrency that concern the authorities of the North American country.
They include negative environmental impact of Bitcoin mining, terrorism financing, money laundering, and market manipulation. Furthermore, regulators believe that the United States could lose geopolitical influence if cryptocurrencies weaken the status of the US dollar.
Various reactions have arisen within international organizations due to the adoption of Bitcoin as legal tender in El Salvador. The Central American Bank for Economic Integration (CABEI) has expressed its willingness to support Bukele in this initiative.
In contrast, the World Bank, the International Monetary Fund (IMF) and the Inter-American Development Bank (IDB) do not agree. Additionally, private financial entities such as JP Morgan expressed their skepticism about the decision that the government of El Salvador took.
Others consider that the adoption of BTC as legal tender could benefit El Salvador. The use of the cryptocurrency would contribute to the inflow of foreign capital to develop industries in the country. Besides, Salvadoran citizens could receive remittances from their relatives more quickly and cheaply.
The relevance of Bitcoin and other cryptocurrencies in the world economy has led many countries to adopt them. However, regulators in countries like China and the United States are still against its decentralized and anonymous nature. Likewise, they argue that Bitcoin mining harms the environment and encourages illicit activities such as money laundering and terrorism financing.
By Alexander Salazar
