While the IMF was already watching with concern as Bitcoin officially became a legal currency in El Salvador, this time the country has received a new warning from the regional commission of the United Nations (UN): the ECLAC.
El Salvador in the firing line
ECLAC (Economic Commission for Latin America and the Caribbean) is a regional commission of the United Nations whose objective is to encourage economic cooperation between member countries. It is also the latest regulator to be concerned about El Salvador’s decision to accept Bitcoin (BTC) as legal tender.
ECLAC Executive Secretary Alicia Bárcena warned that the bitcoin situation in El Salvador poses a number of systemic risks as well as risks related to money laundering. These words were reported last Friday by the local news agency: Diario El Mundo.
A country threatened from all sides?
The executive secretary remains convinced that El Salvador is likely to face scrutiny and risks from the Financial Action Task Force (FATF) or the Financial Action Task Force (FATF), regarding its decision to positively legislate on bitcoin.
On June 17, the World Bank had also denied El Salvador’s request for assistance in the country’s transition to bitcoin adoption, citing issues related to the alleged environmental impact and anonymity of the crypto king. The deputy governor of the Bank of Russia, Alexey Zabotkin, also expressed concern over El Salvador’s decision, as it would pose risks to financial stability.
In issuing this warning, ECLAC joins authorities and global organizations increasingly concerned about El Salvador’s Bitcoin turn. But while the old world dinosaurs are still trying to figure out what Bitcoin is, how long will it be before another country follows El Salvador’s lead?