TL;DR Breakdown
- US concerned over El Salvador Bitcoin law
- Why Bitcoin adoption is a blessing to El Salvador
The United States of America is beginning to express concerns over El Salvador Bitcoin adoption as they caution the central American country on its newly adopted currency.
Victoria Nuland, a former US State Department official and the current Under Secretary of State for Political Affairs, met with Nabiy Bukele, El Salvador President, on Thursday.
The US official urged the Salvadorian president to ensure he does all in his power to regulate Bitcoin and ensure illegal potentials of crypto are not materialized in the country.
After the meeting, Nolan told AFP, “I did suggest to the president that whatever El Salvador chooses to do, you ensure that it is well regulated, that it is transparent and that it is responsible, and you protect yourself against malign actors.”
US threatened with El Salvador Bitcoin adoption?
It appears the world power are frightened with El Salvador Bitcoin adoption as the central American country adopted the US dollar as its primary currency before legalizing Bitcoin recently.
El Salvador Bitcoin adoption is a twist in the global financial arena for the US, whose USD is considered a global currency.
However, the world power is more skeptical about BTC than El Salvador. Authorities in the US have condemned BTC for various reasons in the past, from environmental concerns to high volatility to abating crimes and, ultimately, its potential to weaken the influence of the USD.
However, El Salvador is undeterred from adopting the currency for many reasons. The digital assets as a legal tender in the country provide the small central American country certain advantages.
One of the advantages is the country getting exposed to foreign capital willing to invest and develop industries in the country, financial freedom for it, among others.
Adopting Bitcoin has come with many controversies and reactions from both internal and external players in El Salvador. Some Salvadorians are against it so are certain regulators against the move by the country, including the IMF.
JP Morgan and the BIS are also skeptical and have adopted a wait-and-see approach.
