ECLAC does not support legal bidding on Bitcoin (BTC) El Salvador
The Latin America and the Caribbean Economic Area (ECLAC) is concerned about El Salvador’s legal offering for Bitcoin as a partner. The ECLAC Executive Secretary has clearly expressed concern about El Salvador’s use of decentralized currencies in its daily routine to demonstrate ECLAC’s rejection of legal tender Bitcoin (BTC).
ECLAC does not support Bitcoin (BTC) Legal Bidding El Salvador El
Alicia Bárcena Ibarra, Executive Secretary of ECLAC, expressed concern about El Salvador’s decision during a video conference demonstrating its impact in Latin America. Alicia Bárcena said ECLAC is waiting for El Salvador to introduce regulatory changes, but also warned the country about the hidden security threats Bitcoin could pose as legal tender.
“Lots of macroeconomic, financial and regulatory challenges the truth of which requires much more careful analysis … no technical study can tell us about the risks or benefits involved. It could be for El Salvador,” said Bárcena.
ECLAC is concerned about the response of the Financial Action Task Force (FATF) to the implementation of the law. With the risk of money laundering and several other data breaches rising, El Salvador is positioning itself for a series of nasty investigations by the FATF.
“It is also clear that if this law goes into effect, the country could face the Financial Action Task Force (FATF), the world’s highest anti-money laundering agency, and to name a few. Risks they face may be exposed, “added Barcena.
Learn more about ECLAC
ECLAC, based in Santiago, Chile, is one of five regional committees of the United Nations. It was founded with the aim of contributing to the economic development of Latin America, coordinating measures to this end and strengthening economic relations between countries and with other countries in the world. Promoting the social development of the area then became one of its main objectives.
The area of work was later expanded to include the Caribbean countries and the aim of promoting social development in the region was also included.
In 1996, the Member States reviewed their institutional mandate and determined that the Commission would act as a center of excellence responsible for working with Member States on the global analysis of development processes.
This mandate includes the design, monitoring and evaluation of public policies and the provision of operational services in the following areas: technical information, advisory services, training, collaborative support, regional and international coordination.
ECLAC promotes economic and social development through regional and subregional cooperation and integration, plans technical cooperation projects, organizes conferences and meetings of intergovernmental groups and experts and brings regional perspectives on global issues to international forums.
33 Latin American and Caribbean countries are member states of ECLAC, along with several North American, Asian and European countries with historical, economic and cultural ties to the region. The Commission has a total of 46 Member States and 14 non-independent Caribbean areas affiliated with the Commission.
Her current Executive Secretary is Alicia Bárcena from Mexico, whose term began on July 1, 2008. Deputy
The Executive Secretary is Mario Cimoli, an Italian-Argentine national. The executive assistant secretary for program analysis and management is the Cuban Raúl García-Buchaca.
ECLAC is just one of several organizations that do not support legal tender for Bitcoin in El Salvador.
The list of influential global organizations opposing El Salvador’s decision is long. The International Monetary Fund (IMF) recently warned the country of the multiple legal and financial consequences it can face from legal tendering of Bitcoin. IMF spokesman Gerry Rice raised some of the organization’s concerns at an IMF press conference, related to bitcoin and supported the IMF’s approval of an emergency loan by El Salvador to support their economy in a post-pandemic scenario.
“The introduction of Bitcoin as legal tender raises a number of macroeconomic, financial and regulatory issues that require very careful analysis … We are closely monitoring developments and we will continue to do so. Effective management practices are critical in dealing with them, ”says Rice,
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