Creative minds of US Senate, senators Jim Risch, Bob Menendez, and Bill Cassidy have introduced a bill titled Accountability for Cryptocurrency in El Salvador Act. The title of the bill, its intentions and the implications without any due diligence are funny and annoying at the same. Senators are implying that somehow El Salvador's adoption of bitcoin as legal tender pose risks to the US Financial System. This looks and sounds wrong in so many levels.
First, how is internal financial system of a sovereign country any of their business? We have seen series of attacks directed at El Salvador and its implementation of bitcoin as a legal tender from international bankers like World Bank, IMF, Bank of England, and others already. It is one thing to express disapproval or disagreement of foreign country's decisions or actions. But it is completely a different thing to declare actions of a country to build a better future for its people as a risk to a financial system.
US financial system has many risks and problems. What El Salvador has been doing with bitcoin isn't one of them. El Salvador is a country with a GDP or 25 billion dollars. By comparison US GDP is 21 trillion dollars. The difference in the sizes of economies is just enormous. These US senators waste billions of dollars on daily basis and see El Salvador's monetary policy as risk to the US financial system? If they only could spent their time on fixing real problems, instead of embarrassing themselves and wasting time with frivolous legislation, maybe they would be able to accomplish something useful.
This legislation would require State Department to report on El Salvador's bitcoin implementation. The problem is, they don't just want State Department to produce some analysis of bitcoin as legal tender in El Salvador. They want this report to be done via the prism of set of risks: risks for cybersecurity, economic stability, democratic governance. And they want State Department to come up with a plan to mitigate these potential risks to the US financial system.
This is so frustratingly illogical. They have concluded that there are risks already and want State Department to come up with something to justify this position. In other words fabricate analysis to make their point. Then also come up with solutions to these fabricated analysis that prove El Salvador's bitcoin adoption is a risk to the US financial system. lol.
That is not how truthful and genuine analysis work. You don't get to make conclusion without any evidence. That is if you were seeking truth. If you are so interested in how bitcoin implementation is going. Why not just hire third party analysts who understand the finance and bitcoin as a technology and the honest work. Once the proper and honest research is done then read the final assessments and make an educated conclusions. I guess that wouldn't serve the intended political games.
The president of El Salvador, saw this crazy bill and responded on twitter:
OK boomers…
You have 0 jurisdiction on a sovereign and independent nation.
We are not your colony, your back yard or your front yard.
Stay out of our internal affairs.
Don’t try to control something you can’t control 😉
On an international stage, such actions by US Senators are so disrespectful. That is not how diplomacy is conducted. Bukele, gives a perfect respond. They do have zero jurisdiction over El Salvador and should stop acting like bullies. Even if El Salvador's decision is wrong and they are making a mistake, it is their mistake to make. Nobody complained when El Salvador adopted USD as legal tender a couple decades ago. USD is still a legal tender in El Salvador alongside with bitcoin. If anything US Senators should be supportive on El Salvador's ambitions to pursue a better future to its people.
What happened to free market, democracy, will of people, rights of countries to determine their own future? When convenient all politicians try to preach these concepts and how important they are. But then easily forget and violate them if there are some personal or political gains to have.
What would really be appropriate is countries with smaller economies around the world conduct proper research the risks global reserve currency like USD and fiat systems pose to their economies and financial systems. And come up with risk mitigating measures to build better economies their people deserve. Maybe, just maybe they will realize bitcoin offers much more than they could have ever asked from a solid monetary system.
US debt is so high, that I doubt it will ever be paid or there any intentions to pay it off. The annual deficit is just ridiculous, and incredible amount of money is just being wasted year over year. If any of these senators were true to protecting US financial system, economy, and prosperity of people, they would put all of their efforts and time in figuring out ways how not to waste money and be a little bit fiscally responsible.
Please, leave El Salvador alone.