A senior US State Department official met with El Salvador President Nayib Bukele on Wednesday and recommended that he regulate bitcoin once it becomes legal tender in the Central American country, starting in September. El Salvador uses the US dollar as its official currency, but on June 9 it approved the adoption of bitcoin as legal currency. It intends to use cryptocurrency for all transactions, making it the first country to do so.
“I suggested to the president that whatever El Salvador chooses to do, you make sure that it is well regulated, that it is transparent and that it is accountable and protects you from malicious actors,” said Victoria Nuland, undersecretary of state for political affairs. Nuland also said she told Bukele that the US was taking “another tough look at bitcoin” following the cyber attack on the Colonial Pipeline.
The cyber attack on the Colonial Pipeline in May forced a temporary suspension of operations causing serious problems. The company agreed to pay a $ 4.4 million bitcoin ransom to the hackers. The Salvadoran government recently discussed its bitcoin decision with the International Monetary Fund, a meeting that Finance Minister Alejandro Zelaya said was productive. The World Bank, however, has rejected a request for assistance from El Salvador in its attempt to adopt bitcoin as its official currency.
