A New Bitcoin Law Risks Ensnaring El Salvador in FATF’s Regulatory Web

Source: Cato Institute
by Steve H Hanke & Nicholas Hanlon

“El Salvador’s current currency regime is governed by the Monetary Integration Law. This law made the U.S. dollar legal tender and established a competitive currency regime, under which any currency that is mutually agreed upon by the parties to a transaction is legal to use. … Enter El Salvador’s Bitcoin law …. Article 7 of the law mandates that El Salvadorans must accept Bitcoin if it is offered. This will destroy El Salvador’s competitive currency regime and rob those being offered Bitcoin a choice. In addition, it will create a regulatory nightmare. The intergovernmental Financial Action Task Force (FATF) will be all over El Salvadoran banks, businesses, and other financial institutions like a wet blanket.” [editor’s note: The “forced tender” aspect of El Salvador’s law should be repealed. But FATF should also be disbanded and salt sown in the earth it grew in – TLK] (07/13/21)