A bill has been introduced by several U.S. legislators to reduce the risk of El Salvador legalizing bitcoin. “El Salvador recognizing bitcoin as official currency opens the door for money laundering cartels and undermines U.S. interests,” said a U.S. senator.
US Concerned About Risks From El Salvador’s Bitcoin Law
On Wednesday, the U.S. Senate Committee on Foreign Relations reported that Senators Jim Risch and Bob Menendez (D.N.J.), as well as Bill Cassidy (R.La.) had introduced a bill titled the ‘Accountability for Cryptocurrency in El Salvador Act’. have introduced a bill titled the ‘‘Accountability for Cryptocurrency in El Salvador Act’’ or ‘‘ACES Act.’’
The proposed legislation requires a report from the State Department on El Salvador’s adoption of bitcoin as legal tender and “a plan to mitigate potential risks to the U.S. financial system,” the announcement details. The State Department report would include an analysis of El Salvador’s bitcoin adoption as legal tender and the risks for cybersecurity, economic stability, and democratic governance in El Salvador.
Senator Risch commented:
El Salvador’s adoption of bitcoin as legal tender raises significant concerns about the economic stability and financial integrity of a vulnerable U.S. trading partner in Central America.
He added: “This new policy has the potential to weaken U.S. sanctions policy, empowering malign actors like China and organized criminal organizations. Our bipartisan legislation seeks greater clarity on El Salvador’s policy and requires the administration to mitigate potential risk to the U.S. financial system.”
Senator Cassidy said:
El Salvador recognizes bitcoin as its official currency, which opens up the possibility of money laundering and weakens U.S. interest.
Responding to the bill’s introduction, El Salvador’s president, Nayib Bukele, tweeted:
OK boomers… You have 0 jurisdiction on a sovereign and independent nation. You don’t have to be our colony. We can also not be your backyard or front yard. Keep out of our inner affairs. Don’t try to control something you can’t control.
El Salvador made bitcoin legal tender in September 2017. In total, El Salvador has acquired 1,801 BTC.
The U.S. is not the only country concerned about El Salvador’s Bitcoin law. Andrew Bailey (BoE Governor) raised concerns last November about the legality of bitcoin in El Salvador.
The International Monetary Fund has also repeatedly called for the abandonment of bitcoin legal tender. The IMF says that BTC is more expensive than it could bring in the long-term.
El Salvador does not believe that there is any reason for it to reduce its Bitcoin laws. BTC is expected to be legal in at least two other countries by President Bukele this year.
How do you feel about the U.S. passing a bill in order to reduce the risk of El Salvador using bitcoin as legal currency? Comment below.
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