El Salvador warned of the need for ‘effective regulation’ of Bitcoin

Deputy Secretary of State for Political Affairs Victoria Nuland discussed the law passed by El Salvador recognizing Bitcoin as legal tender with President Nayib Bukele.

#ElSalvador
Victoria Nuland aseguró que en su reunión con el presidente @nayibbukele conversaron sobre la implementación del #Bitcoin como moneda de curso legal en el país.

Vía @cardozaTCS. pic.twitter.com/NsWmqsY3u0

— TCS Noticias (@tcsnoticias) July 1, 2021

During her visit to the Latin American country, Nuland stressed the need for clear rules for cryptocurrency.

\u00abAs I proposed to the president, whatever choice El Salvador makes, it must be effectively regulated, transparent, and responsible, and you must protect yourselves from bad actors,\u00bb the diplomat said at the press conference.

Nuland also noted that Bitcoin is under close scrutiny in the United States after its use in recent ransomware attacks on American companies, including Colonial Pipeline.

According to Reuters, during her stay in El Salvador the deputy secretary expressed hope that the country would reach an agreement with the International Monetary Fund (IMF) to continue the financing program.

Earlier, the representative of the institution warned of the risks and regulatory issues that the authorities’ decision regarding cryptocurrency could entail. JPMorgan analysts emphasized that the legalization of Bitcoin could jeopardize IMF talks.

Earlier, the World Bank, refused to provide El Salvador with assistance in implementing the cryptocurrency.

The Central American Bank for Economic Integration, by contrast, promised to assist.