El Salvador responds to U.S. provocations on Bitcoin: ‘We are not your colony’!

U.S. senators have introduced a bill to study the impact of Bitcoin in El Salvador. In particular, they want to assess the risks related to money laundering, cybersecurity, and democracy in a trading partner country. The president of El Salvador immediately reacted very strongly on Twitter to defend his country’s sovereignty! Why? On June 8, 2021, the country formalized Bitcoin as a legal tender. From now on, El Salvador will have two official currencies: the U.S. dollar and Bitcoin. Unsurprisingly, some voices in the United States are speaking out against the risks of such a decision. U.S. Senators concerned about the use of Bitcoin in El Salvador Several U.S. senators have put a bill on the table called the “Cryptocurrency Role Following El Salvador Act” or “ACES Act”. These senators include Jim Risch, Bob Menendez and Bill Cassidy. The bill would mandate the U.S. State Department to launch investigations in El Salvador. The objective would be to quantify the risks associated with the formalization of Bitcoin in El Salvador on cybersecurity, economic stability, and democracy in El Salvador. trading partner in Central America. (…) This new policy has the potential to weaken U.S. sanctions policy, strengthening malign actors like China and organized crime. Our bipartisan legislation aims to clarify El Salvador’s policy and compel the administration to reduce potential risks to the U.S. financial system.” Jim Risch, U.S. El Salvador’s President Nayib Bukele goes to the front lines to defend Bitcoin! American scepticism about the situation in El Salvador is anything but surprising since Bitcoin directly competes with (and thus weakens) the “sacrosanct” U.S. dollar. Unsurprisingly, the bill was not well received in El Salvador, which saw it as interference. The President of El Salvador, a big supporter of Bitcoin, reacted vehemently on Twitter. He reminded the senators that El Salvador is not an American “colony”. “ok, boomers… You have 0 rights to a sovereign and independent nation. We are not your colony, backyard, or garden; stay out of our national affairs. Nayib Bukele, President of El Salvador This is not the first time that voices have been raised to criticize El Salvador’s decision on Bitcoin. For example, the IMF has repeatedly asked the country to reverse their decision. Similarly, the Bank of England has expressed concern.

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