A bipartisan group of senators introduced legislation in the United States
Senate to seek to reduce the perceived risk of El Salvador's adoption of
Bitcoin (BTC) as a legal currency.
Launching from Cointelegraph, Friday (18/02), the proposed Accountability
for Cryptocurrencies in the El Salvador Act (ACES) aims to "reduce potential
risks to the US financial system" such as money laundering and terrorism
financing.
The bill was introduced by senators James Risch and Bill Cassidy with the
signing of Bob Menendez.
Senator Risch wrote in Wednesday's announcement:
"The adoption of Bitcoin in El Salvador as a legal tender raises significant
concerns about the economic stability and financial integrity of vulnerable
US trading partners in Central America."
Senator Cassidy wrote, "Recognizing Bitcoin as the official currency opens
the door to money laundering cartels and undermines US interests."
If passed, the bill would give federal agencies 60 days to submit a report
assessing several aspects of the Central American nation's capabilities
regarding cybersecurity and financial stability.
The first part of this report will assess how El Salvador developed and
enforced the Bitcoin Law, how El Salvador will mitigate financial integrity
and cybersecurity risks from digital assets, whether it meets the
requirements of the Financial Action Task Force, its impact on individuals
and businesses, and the effects of cryptocurrencies. to its economy.
The next section of the report will describe El Salvador's internet
infrastructure and assess the extent to which cryptocurrencies are used
there, the storage of funds, potential for hacking, and the level of
financial access enjoyed by underprivileged or unbanked Salvadorans.
Following the publication of the report, the bill will establish action
plans from various agencies based on the findings.
Salvadoran President Nayib Bukele reacted to perceived interference in his
country, tweeting, "You have 0 jurisdiction in a sovereign and independent
country. We are not your colony, your backyard or your front yard."
The government of El Salvador passed the Bitcoin Act in June 2021, making
Bitcoin the legal currency in the country and, subsequently, forcing
businesses to accept it as a means of payment.
The law has seen some opposition from domestic lawmakers and the
International Monetary Fund who have urged President Bukele to repeal the
Bitcoin Act many times, most recently on January 25.
Of course, it has been praised by the world's biggest crypto proponents
including by market cap.
Introducing Latest Bill, US Senator: To Reduce the Risks of El Salvador's
BTC Act.
