US Lawmakers Introduce Bill to Mitigate Risks From El salvador adopting Bitcoin as Legal Tender
Feb 18, 2022 11:21 UTC
Feb 18, 2022 at 11:21 UTC
Several U.S. lawmakers have introduced a bill to mitigate the risks from El Salvador adopting bitcoin as a medium of exchange. “El Salvador recognizing bitcoin as official currency opens the door for concealment cartels and undermines U.S. interests,” said a U.S. senator.
US Involved regarding Risks From El Salvador’s Bitcoin Law
The U.S. Senate Committee on Foreign Relations declared weekday that Senators Jim Risch (R-Idaho), Bob Menendez (D-N.J.), and Bill Cassidy (R-La.) have introduced a bill titled the ‘‘Accountability for Cryptocurrency in Central American country Act’’ or ‘‘ACES Act.’’
The projected legislation needs a report from the State Department on El Salvador’s adoption of bitcoin as medium of exchange and “a conceive to mitigate potential risks to the U.S. financial set-up,” the announcement details. The State Department report would come with an analysis of El Salvador’s bitcoin adoption as a medium of exchange and also the risks for cybersecurity, economic stability, and democratic governance in El Salvador.
Senator Risch commented:
“El Salvador’s adoption of bitcoin as medium of exchange raises vital issues regarding the economic stability and money integrity of a vulnerable U.S. commercialism partner in Central America.”
He added: “This new policy has the potential to weaken U.S. sanctions policy, empowering malign actors like China and arranged criminal organizations. Our two-way legislation seeks larger clarity on El Salvador’s policy and needs the administration to mitigate potential risk to the U.S. financial set-up.”
Senator Cassidy opined:
El Salvador recognizing bitcoin as official currency opens the door for concealment cartels and undermines U.S. interests.
Responding to the bill’s introduction, El Salvador’s president, Nayib Bukele, tweeted:
OK boomers… you’ve got zero jurisdiction on a sovereign and freelance nation. we have a tendency to ben’t your colony, your back yard or your grounds. keep out of our internal affairs. Don’t try to manage one thing you can’t manage.
El Salvador adopted bitcoin as a medium of exchange aboard the U.S. greenback in September last year. Since then, the country has purchased 1,801 BTC altogether.
The U.S. isn’t the sole country involved regarding El Salvador’s Bitcoin law. In November last year, Bank of European country (BOE) Governor Saint Andrew the Apostle Bailey raised issues regarding bitcoin being employed as a medium of exchange in Central American countries.
Furthermore, the International fund (IMF) has repeatedly urged the country to abandon bitcoin as a medium of exchange. consistent with the IMF, the prices of constructing BTC medium of exchange exceed the potential advantages.
El Salvador, however, doesn’t see a reason to reduce its Bitcoin law. In fact, President Bukele has foreseen that 2 a lot of countries can adopt BTC as medium of exchange this year.