Three Democratic senators have proposed a bill that could hit El Salvador hard. It’s not just about President Nayib Bukele; it’s about potentially freezing El Salvador’s assets and investigating how they’re using Bitcoin.
Targeting Bukele and El Salvador’s Bitcoin
The “El Salvador Accountability Act” aims to use the full force of US economic power. This means:
- Freezing assets: Thirteen Salvadoran officials, including President Bukele, would have their US assets frozen. Their US visas would also be revoked.
- Blocking loans: The US would push international organizations like the World Bank and IMF to refuse loans to El Salvador. Direct US aid would also be cut off.
- Bitcoin investigation: A thorough investigation into El Salvador’s Bitcoin holdings is planned. This includes tracking Bitcoin addresses, identifying exchanges used, and estimating the total amount of Bitcoin El Salvador owns. The goal is to see if they’re using Bitcoin to dodge sanctions.
Human Rights Concerns and Bitcoin’s Role
The senators say this is primarily about human rights abuses under Bukele’s leadership. They cite mass imprisonments without due process. However, the focus on Bitcoin reveals concerns that El Salvador might be using its Bitcoin reserves to avoid sanctions. The bill wants to uncover any potential misuse of Bitcoin.
Bukele’s Response and the Bill’s Future
President Bukele mocked the bill on social media. The bill’s success is uncertain. While the senators can force a vote if the State Department doesn’t cooperate, Republican support is unclear, and the House’s stance is unknown. If passed, the sanctions would last at least four years.
The Bottom Line
This bill is a serious attempt to pressure El Salvador’s government over human rights concerns and its use of Bitcoin. The outcome remains to be seen.