El Salvador: Crypto adoption under US surveillance

Even today, crypto adoption in El Salvador is not unanimous. In the United States, for example, American senators have just submitted a new bill. The goal: to monitor the crypto adoption (specifically Bitcoin) in El Salvador and assess its economic impact.

US Senators Keeping Tabs on El Salvador Bitcoin (BTC) Adoption in Reintroduced Bill: Report https://t.co/ahtYV5trmn

— The Daily Hodl (@TheDailyHodl) May 14, 2023

A bill on crypto adoption in El Salvador

In the United States, crypto regulations remain a subject of debate. However, this doesn’t stop one of the world’s largest powers from taking an interest in the future prospects of crypto in other countries. The actions of two American senators clearly demonstrate this.

According to the Washington Examiner report, Democrat Bob Menendez from New Jersey and Republican Jim Risch from Idaho have introduced a bill concerning crypto adoption in El Salvador. More precisely, it is a bill on accountability for cryptocurrency in El Salvador.

By introducing this bill, the two American senators hope to protect against the risks that crypto adoption in El Salvador could entail. This includes combating illegal activities and money laundering.

Indeed, this bill would primarily enable the Department of State to establish reports on the economic impact of Bitcoin adoption in El Salvador. It will also evaluate the potential consequences on cybercrime and democratic governance in El Salvador.

El Salvador: A reference (or not) for the United States

El Salvador is the first country in the world to use Bitcoin as legal tender. This crypto adoption in El Salvador became possible thanks to its president, Nayib Bukele, a staunch advocate of the main crypto asset.

Today, the Salvadoran government is actively investing in Chivo. It is a federal digital wallet now available in Europe via the App Store. The current administration is also sparing no effort in setting up Bitcoin ATMs across the country.

What are the impacts of crypto adoption in this country? To what extent is El Salvador capable of effectively combating illicit finance and money laundering? American senators believe that answers to these questions can help them better consider cryptocurrency regulation in Central America.