In 2021, El Salvador officially adopted bitcoin (BTC) as legal tender. The very courageous step received some criticism, but now, two years later, it doesn’t seem to have worked out that badly. Yet some are still concerned. Several US senators argue that the Bitcoin policy of the Central American country is a possible threat to the United States.
US senators request
Last month, Senators Jim Risch and Bob Menendez served submit a request for an official investigation into El Salvador. The couple wants clarity on the country’s Bitcoin adoption and the potential impact on cooperation between El Salvador and the United States.
“Based on the interest of the United States in the development and transparency of Central America, we would like more clarity on how the adoption of bitcoin as legal tender affects the financial and economic development of El Salvador. In addition, we want clarity about El Salvador’s capacity to prevent money laundering and other criminal activities.”
‘Bitcoin country’ El Salvador
Despite concerns from American politicians, El Salvador seems to benefit from the bold move. The vast majority of the population now seems to support President Nayib Bukele’s bitcoin policy, and that was certainly not the case in the beginning. The country also launched an education program to inform the public about bitcoin and economic affairs.
In addition, El Salvador is making great strides in other sectors. For example, the country recently scrapped all taxes on technological development. The goal is to attract even more capital to the country, something that has been quite successful since the adoption of bitcoin in 2021. Finally, it was announced last week that the country has appointed a new economic advisor. It concerns Saifedean Ammous, the Swiss economist and author of “The Bitcoin Standard”.
El Salvador is the first country to embrace bitcoin as legal tender. It would come as no surprise if more countries follow in the footsteps of the Central American country in the future.