Jim Risch and Bob Menendez are trying to figure out the potential risk for the US because of its economic relationship with Bitcoin bull country El Salvador.
El Salvador is a Latin American country. In Sep 2021, this country adopted Bitcoin as a legal tender officially, under the leadership of the country’s president Nayib Bukele. El Salvador is currently working on several Bitcoin focussed initiatives, to bring better opportunities for the citizens to grow with Bitcoin investment vehicles.
A bill was introduced in Feb of this year to address the risks associated with El Salvador’s Bitcoin adoption. That bill was recently re-introduced by Jim Risch and Bob Menendez.
This bill asks for a report to address the potential risks associated with bilateral relationships with El Salvador.
In short, the bill will order the economic researchers to find out the risks for America over its economic relationship with a country, which is using Bitcoin as a currency.
Bill also aims to find out all the other risks like money laundering & illicit financial activities, alongside financial stability risks.
At the present time, El Salvador holds nearly 2,546 Bitcoins. Since late 2022, this country has been buying 1 Bitcoin per day. To purchase this amount of Bitcoin, El Salvador spent nearly $108,264,966. In short, the country is in net loss with its Bitcoin holding plans at current trade price.
Because of the downfall in the trade price of Bitcoin, many citizens of this country criticised the ruling government & its president Bukele.
Once Bukele clarified that the country will not face loss with its Bitcoin holdings until it will not sell and also said that the country buys Bitcoin not for selling purpose.
El Salvador buying Bitcoin for the nation’s gold treasury and also using Bitcoin as a currency alongwith the US dollar. Many experts think that El Salvador’s Bitcoin adoption strategy may result in a big downfall for fiat currency $ dominance.