US recommends El Salvador to regulate bitcoin use

The Undersecretary of Public Affairs of the United States, Victoria Nuland, met with the President of El Salvador, Nayib Bukele. During the meeting, the official recommended the regulation of bitcoin once it becomes a national currency, as it is expected to become a reality on September 7, after the Bitcoin Law is fully regulated.

The information was provided by the news agency France24 yesterday, July 1, 2021. After the Nuland meeting, he detailed the suggestion he made to the president of the Central American nation:

I suggested to the president (Bukele) that, whatever El Salvador decides to do, it make sure that it is well regulated, transparent and accountable, and that it protects itself against evil actors.

The U.S. government official told the head of State of El Salvador that US is taking “a hard look at bitcoin” after the Colonial Pipeline cyberattack.

The ransomware attack on that U.S. pipeline in the state of Texas occurred last May. The authorship was attributed to a group of hackers known as DarkSide. It is a band of computer criminals that is characterized by requesting payments in bitcoin (BTC), or in cryptocurrencies such as monero (XMR), as CriptoNoticias reported.

According to Nuland the attack on the Texas pipeline has made the US have a “tough look at bitcoin”. Source: Twitter.

USA: skeptical about bitcoin * Global Voices

But it is not only for this issue that the United States maintains a skeptical stance on bitcoin and cryptocurrencies. The authorities of that nation are uneasy about several issues among which are: the environmental impact, the financing of terrorism, market manipulation and even the risk that cryptocurrencies could cause the United States to lose geopolitical influence by weakening the influence of the dollar.

The step taken by Bukele towards the adoption of bitcoin as legal tender has generated several reactions also among various international organizations. While the Central American Bank for Economic Integration has expressed its willingness to support El Salvador in this initiative, the World Bank, the International Monetary Fund (IMF) and the Inter-American Bank for Economic Integration (IDB) have not agreed. Private entities, such as JP Morgan, also expressed scepticism.

Instead, others believe that the adoption of BTC as legal tender in El Salvador could benefit that country. Among other things, because it would open the doors to foreign capital willing to invest and develop industries in the country and citizens could receive remittances quickly and cheaply.

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