U.s. Senators Introduced Bill Urging State Department To Review El Salvador's Bitcoin Law Policy

By Author: Greg C. Ryan
Total Articles: 20
Comment this article

On Wednesday a statement got published where Jim Risch said, "El Salvador's adoption of Bitcoin as legal tender raises significant concerns about the economic stability and financial integrity of a vulnerable U.S. trading partner in Central America,". He added, "This new policy has the potential to weaken U.S. sanctions policy, empowering malign actors like China and organized criminal organizations,". Risch urged that bipartisan legislation is looking for greater clarity on El Salvador's policy and the administration should work on reducing potential risk to the U.S. financial system.

Last year in June, El Salvador was the first nation to officially declare Bitcoin (BTC) legal tender which resulted in businesses in the country displaying prices for goods and services in BTC. Residents of the country could pay taxes in BTC. In September 2021, the law that Bitcoin cryptocurrency, which is biggest by market cap, will be accepted as legal tender was passed in El Salvador, which is again a tiny, impoverished country in Central America. The IMF Executive Board reviewed El Salvador after it requested a $1.3bn loan last year.

I am an external analyst and working as a content writer