An incident made the authorities review Bitcoin
Several people consider the market for the world’s biggest cryptocurrency as another means to obtain wealth. But due to the risk factor that it comes with, its volatility perceives as an insecure investment option. This also emphasizes the importance of acquiring a risk appetite to mitigate the losses. But Bitcoin recently became even more lucrative for the countries and individuals equipped to manage the risk that is underlying.
Last month, El Salvador became the world’s first country to adopt Bitcoin as a legal tender. It is in accordance with the recently passed legislation that will take effect in September. Legalizing Bitcoin in a region has shed light on one of the criticisms against it. It is the lack of an independent macroeconomic institutional framework.
US and El Salvador talks about Bitcoin
It is the similar topic of discussion in a latest meeting between US and El Salvador government officials.
The US Under Secretary of State for Political Affairs, Victoria Nuland and El Salvador President Nayib Bukele have discussed the country’s Bitcoin law. Nuland assured the El Salvador officials. Saying that they had “talked about the implementation of Bitcoin as legal tender in the country.”
The senior US State Department official continued:
“I did suggest to the president that whatever El Salvador chooses to do, you ensure that it is well regulated, that it is transparent and that it is responsible, and you protect yourself against malign actors.”
The development came soon. This is after the Colonial Pipeline cyberattack that has made the US authorities take “another tough look at bitcoin.” Nuland claimed.
“The attack in May forced a temporary halt of operations at Colonial, which transports about 45 percent of the fuel consumed on the east coast of the United States. The company agreed to pay a ransom in bitcoin worth $4.4 million to the hackers.”
The International Monetary Fund speaks
Currently, the International Monetary Fund mentioned that it was recently in talks with El Salvador about its position on Bitcoin. And also that it still has some concerns about the similar issue. Last month, the World Bank rejected a request from El Salvador. They are asking for its assistance in implementation of their steps toward the adoption of Bitcoin as official currency.
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