US Senators Express Concerns over El Salvador's Bitcoin Adoption – What's Going On?
El Salvador’s adoption of Bitcoin as a legal tender has caused concern among American lawmakers, who are calling for a risk report on the potential impact on bilateral economic relations and law enforcement cooperation.
Last month, US Senators Jim Risch and Bob Menendez reintroduced a bipartisan bill requesting a State Department report on El Salvador’s Bitcoin adoption.
The bill, dubbed the Accountability for Cryptocurrency in El Salvador (ACES) Act, was initially introduced in February last year.
American lawmakers want an analysis of El Salvador’s adoption of Bitcoin and the risks for cybersecurity, economic stability, and democratic governance in the country.
In a Foreign Relations Committee blog post, Risch expressed concern regarding the implications of El Salvador's move to adopt Bitcoin as legal tender, claiming that it could weaken economic and financial stability. He added:
“Given U.S. interest on prosperity and transparency in Central America, we must seek greater clarity on how the adoption of Bitcoin as legal tender may impact El Salvador’s financial and economic stability, as well as El Salvador’s capacity to effectively combat money laundering and illicit finances."
El Salvador made headlines in 2021 when it became the first country to make Bitcoin legal tender.
The country has since continued its Bitcoin push, with President Nayib Bukele purchasing large amounts of the cryptocurrency.
In mid-November, Bukele even announced that he will begin buying one Bitcoin per day starting from November 18.
As of now, the country is estimated to have around 2,381 BTC, worth around $65 million, acquired at an average price of $43,357.
Bukele’s Bitcoin experiment has been praised in the cryptocurrency world, but criticized by
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