President Nayib Bukele reacted to the news of the introduction of legislation to mitigate an alleged “risk after El Salvador’s Bitcoin adoption”. The Salvadoran president stated unequivocally that the United States has no jurisdiction over El Salvador, a sovereign and independent nation. Also, told the US to stay out of Salvadoran internal affairs.
The Foreign Relations Committee based their legislation on “significant concerns of economic stability & financial integrity” saying that “this [Salvadoran Bitcoin adoption] has the potential to weaken US sanctions, empowering malign actors like #China”.
The State Department report would require:
- An analysis of El Salvador’s adoption of Bitcoin as legal tender and the risks for cybersecurity, economic stability, and democratic governance in El Salvador.
- A plan to mitigate potential risks to the U.S. financial system.