February 25, 2024

Nayib Bukele, President of El Salvador, has rebuked some United States senators for introducing a bill targeting his nation’s adoption of BTC as legal tender.

The US Senators behind the bill known as the Accountability For Cryptocurrency In El Salvador (ACES Act) are Bob Menedez, Jim Rish, and Bill Cassidy. 

The Comments Of US Senators 

The United States believes that the adoption of BTC by El Salvador is capable of threatening the power of the dollar. This is the justification the lawmakers gave for introducing the Act. 

According to Senator Rish, the adoption of BTC as a legal currency could affect the US’s financial integrity and economic stability, one of the world powers. Also, the move can give way for money laundering and empower its competitors like China and other criminal organizations. United States sanctions would lose power as no nation would take it seriously. The lawmaker wants clarification on the policy of the Latin American country so the US can prevent potential risk to its financial system.

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Also, Senator Cassidy noted that for the United States to safeguard the role of the USD as a reserve currency, it must prevent El Salvador from going on with its plan. Cassidy shared the same view with Rish concerning the issue of possible money laundering.

President Bukele Responds On Twitter 

The Latin American President was quick to respond to the new Act. On his Twitter page, he described El Salvador as an independent sovereign state that is not under the jurisdiction of America. Also, he asked the US to stay out of its affairs.

To wrap up his response, the President sent a video of the Current US President, Joe Biden, talking about territorial integrity, sovereignty, and how every nation has the right to choose its path. Bukele tagged the video “this Includes El Salvador ?”

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The ACES Act

The Accountability For Cryptocurrency In El Salvador Act demands two reports from the secretary of State for the US. For the first report, which has to be within 60 days, they must release a paper on El Salvador’s adoption of BTC as a legal currency. The second report, which is not more than 90 days, will have different ways the US can prevent any risk the adoption of crypto will have to its financial system and the price of the dollar.

More also, there are traces of threats and racism in the Act. The Act has asked the secretary of state and other governmental agencies to assess the bilateral and commercial relationships between both states and how to reduce the usage of the USD by El Salvador.

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More to the report, the relevant government agencies have to submit a follow-up report of any development the adoption has made on the economy of El Salvador and how it affects the US. This report will have to be submitted within 270 days.

In January, the International Monetary Fund denounced El Salvador’s adoption of Bitcoin. The United States would likely go on with its plan despite the comment from President Bukele. However, all eyes are on the world power to see the actions they would take.

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