U.S. reminds El Salvador to handle bitcoin responsibly 

The U.S. Department of State has released a statement reminding the El Salvador government to handle Bitcoin with a high sense of responsibility by creating a legal framework for the leading cryptocurrency. 

This reminder stems from the recent ransomware hacking incidents where two large American companies were targeted, JBS and Colonial Pipeline, and demanded to pay in cryptocurrency as ransom. 

Also, matters about macroeconomics, including financial and legal issues are seen as major challenges that El Salvador must face with its bitcoin adaption. 

But even with the possible risks of its mega decision, El Salvador is all set to enforce its Bitcoin law this coming September 7. 

Meeting with Presdient Bukele

The Department’s Undersecretary for Political Affairs Victoria Nuland held a meeting with El Salvador President Nayib Bukele and discussed regulatory matters regarding bitcoin. 

Nuland said that she reminded President Bukele about the importance of regulating Bitcoin with full transparency and responsibility. 

The meeting was part of American officials’ visit to El Salvador, Paraguay, and Panama to discuss matters related to democracy, regional plans, and migration, but it was clear that cryptocurrencies were also part of the discussions. 

A loan from IMF

Before the Bitcoin bill was approved, International Monetary Fund (IMF) representatives have been discussing plans with the El Salvadoran lawmakers about the possibility of a loan to support the country’s economy. 

The plan was reportedly supported by the U.S. State Department, but the loan came to a halt when the government, spearheaded by President Bukele, suddenly passed a law making bitcoin its legal tender. 

The IMF later expressed its concerns about the possible long-term consequences of this law on El Salvador’s economy and its citizens. 

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/bitcoin/u-s-reminds-el-salvador-to-handle-bitcoin-responsibly/