Hey, their guys, you all probably know by now that the US is not a big fan of El Salvador’s Bitcoin adoption law and now a group of US senators have introduced new legislation called the Accountability for Cryptocurrency in El Salvador (ACES) Act which is focused on studying and analysing the effects of the Bitcoin law in El Salvador and mainly its effect over the US financial system. Plus, it has another key agenda to find out key solutions to counter any probable ill effects of the law on the US economy.
Why is the US fearful about the law?
Well, many experts believe that Bitcoin is a highly volatile asset and it is hard to track. Hence, inducting Bitcoin into a nation’s economy could prove to be devastating as high price swings could destabilise the whole economy and also in the same way harm other countries economically who are associated with them via trading or some other economical means. Further, as the asset is hard to track it would only give rise to the funding of illegal activities.
Plus, it was also stated by Ex-President Donald Trump in the past that the Bitcoin legal tender law is undermining the US dollar which in other words is undermining the US economy and the US’s authority.
So, from the above lines, one can easily understand another major reason why a developed nation such as the US is in fear of the law as they believe that this would undermine their authority over other nations such as El Salvador.
Till now, El Salvador has paid no heed to these warnings and has clearly stated that they will in no way discard the law under any pressure from any foreign body, as this futuristic technology is kind of a getaway ticket for any developing nation from the drawbacks of a fiat-based economy and further to get out of the dominating influence of any developed nation’s economy such as the US dollar.
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