US Government Official Calls For ‘Responsible’ Handling Of BTC By El Salvador
US authorities are closely monitoring the onboarding of Bitcoin as a legal tender in neighboring El Salvador and want all angles to be covered, according to AFP.
‘Tough Look At Bitcoin’
Bitcoin may be gaining favor in some countries but not in the United States. According to current Under Secretary of State for Political Affairs Victoria Nuland, the global world power is taking another “tough look at Bitcoin” following its involvement in questionable public events.
The long-time US official noted that the ransomware attack on the Colonial Pipeline has forced the US government to be careful in their dealing with the digital currency.
In the media briefing she held after her visit with El Salvador President Nayib Bukele, Nuland noted that the discussion touched on Bitcoin and the Latin American nation’s plans to make it a legal tender. She added,
“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.”
El Salvador’s push towards a crypto-friendly government follows after a meeting between President Bukele and Strike co-founder Jack Mallers during a Bitcoin conference held in Miami. This saw Bukele introduce legislation that led to the adoption of Bitcoin as a second legal tender after the US dollar.
The Greenback Under Threat
The US dollar has undergone a lot of challenges so far. Starting with China’s continued development of its digital renminbi, US experts have pointed out that the Asian giant is looking to topple the dominance of the dollar and replace it as the world’s reserve currency. Chinese authorities have refuted these claims.
With El Salvador pushing for a crypto-focused medium of exchange, this could see the greenback lose its place with time to Bitcoin as the virtual currency is non-censurable. This unique feature could help the El Salvadoran government receive remittances without worrying about sanctions from the US government on its policies.
Another benefit will see more blockchain-focused startups opening businesses in the Latin American country, thereby bringing much-needed development into the struggling American nation.
However, the battle is half-won as Bukele needs to raise loans to ensure this works out. The World Bank is not really keen on this and has refused to give the needed funds.
However, Finance Minister Alejandro Zelaya noted that a recent discussion with the International Monetary Fund (IMF) was productive.
In addition, the Central American Bank for Economic Integration is willing to lend a hand even though it may not be financially. Speaking at a recent conference, President Dani Mossi said the bank is willing to provide a “technical team” to assist the country’s endeavors.