The Senate bill to mitigate the risks from El Salvador adopting bitcoin as legal tender has advanced in the U.S. “As El Salvador has adopted bitcoin as legal tender, it’s critical we mitigate risks to our financial system,” said one of the U.S. lawmakers who introduced the bill.
Senate Committee approves Bill to mitigate risks from Bitcoin being legal tender in El Salvador
The U.S Senate Foreign Relations Committee (SFRC) has advanced the ‘‘Accountability for Cryptocurrency in El Salvador Act’’ or ‘‘ACES Act.’’ The bill was introduced on Feb. 16 by Senators Jim Risch (R-Idaho), Bob Menendez (D-N.J.), and Bill Cassidy (R-La.). This bill aims to reduce the risk that El Salvador will adopt bitcoin as its legal currency.
SFRC Ranking Member Senator Risch tweeted Wednesday:
As El Salvador has adopted bitcoin as legal tender, it’s critical we mitigate risks to our financial system.
“The legislation passed by SFRC today requires federal agencies to examine risks, including potential empowerment of bad actors & organized crime,” he said.
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 report would include an analysis of El Salvador’s bitcoin law and the risks for cybersecurity, economic stability, and democratic governance.
El Salvador adopted Bitcoin as its national currency in September 2017. In total, El Salvador has acquired 1,801 BTC.
Salvadoran President Nayib Bukele posted this tweet in response to the Senate Committee passing the bill:
It was never in my wildest dreams that I would have imagined the US government being afraid of what is happening here.
In a follow-up tweet, he wrote: “The U.S. government does not stand for freedom and that is a proven fact. We will continue to stand for freedom. Game on.”
Senator Bill Cassidy responded to Bukele’s tweet about freedom. He wrote: “Salvadoran residents in the United States don’t like this policy. Their concerns are addressed. Perhaps they don’t trust a president who brags about trading bitcoin ‘naked.’”
The U.S. is not the only country concerned about El Salvador’s bitcoin law. Andrew Bailey (BoE Governor) raised concerns last year about the legality of bitcoin in El Salvador.
Additionally, the International Monetary Fund repeatedly exhorted the country not to use bitcoin as a legal tender. The IMF claims that the cost of legalizing bitcoin as a currency is greater than the benefits.
El Salvador does not believe that there is any reason for it to reduce its bitcoin laws. BTC will be adopted as legal tender in two additional countries this year, according to President Bukele.
Let us know your thoughts on the U.S. Bill to Reduce the Risks of El Salvador adopting Bitcoin as legal tender. Please comment below.
Image creditShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com doesn’t offer investment, tax or legal advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.