El Salvador’s President, Nayib Bukele, asked US Senators to stay out of the country’s internal affairs on Wednesday after they demanded an investigation into the economic risks the US faces as a result of the Central American country’s adoption of Bitcoin as legal tender.
Senators Jim Risch, Bill Cassidy, and Bob Menendez introduced bipartisan legislation in the United States Senate requiring a State Department report on Bitcoin adoption in El Salvador.
The proposed Accountability for Cryptocurrency in El Salvador Act (ACES) aims to reduce potential threats to the US financial system, such as money laundering and terrorist financing.
If the bill is passed, federal agencies in the United States would have 60 days to submit a report evaluating various aspects of the Central American country’s cybersecurity and financial stability capabilities.
Bukele, 40, responded on Twitter, saying, “Okay, baby boomers… You have no power over a sovereign and independent country. We are not your colony, nor are we in your back or front yard. Please stay out of our internal affairs. Don’t try to control something over which you have no control.”
El Salvador was the first country in the world to legalize cryptocurrency alongside the US dollar, a move that drew harsh criticism from the International Monetary Fund (IMF).
Senators in the United States have also expressed concern that the adoption of Bitcoin will weaken the US government’s sanctions policy and increase criminal organization activity.
The Salvadoran government has been chastised by economists and the opposition for failing to be transparent in the process of purchasing and managing the funds, despite having purchased 1,801 Bitcoins since September.
El Salvador-US relations have deteriorated since the White House publicly condemned cases of corruption in Bukele’s government, as well as an escalation of measures to consolidate power.