A bipartisan group of senators presented legislation in the U.S. Senate which looks for to alleviate viewed dangers postured by El Salvador’s adoption of Bitcoin as a legal currency.
The proposed Accountability for Cryptocurrency in El Salvador Act (ACES) intends to “mitigate potential risks to the U.S. financial system” such as cash laundering and terrorism financing.
The bill was presented by Republican Senators Jim Risch and Bill Cassidy with Democratic Senator Bob Menendez finalizing on. Senator Risch composed in the Feb. 16 statement that:
“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.”
Senator Cassidy composed that “recognizing Bitcoin as official currency opens the door for money laundering cartels and undermines U.S. interests.”
If the expense passes, it would offer Federal firms 60 days to send a report that evaluates a number of elements of the Central American country’s capabilities relating to cybersecurity and monetary stability.
The very first part of the report would examine how El Salvador established and enacted the Bitcoin Law, how El Salvador will “mitigate the financial integrity and cyber security risks” from virtual properties, whether it fulfills Financial Action Task Force (FATF) requirements, the effect on people and services, and the result crypto will have on its economy.
The next part of the report would explain El Salvador’s web facilities and examine “the degree to which cryptocurrency is used” there, custody of funds and the capacity for hacks, and the rate of monetary gain access to impoverished or unbanked El Salvadorans delight in.
Following the issuance of these reports, the expense would specify action strategies from different firms based upon the findings.
El Salvador’s President Nayib Bukele responded versus the viewed disturbance in his nation, tweeting “You have 0 jurisdiction on a sovereign and independent nation. We are not your colony, your back yard, or your front yard.”
You have 0 jurisdiction on a sovereign and independent country.
We are not your nest, your backyard or your front lawn.
Stay out of our internal affairs.
Don’t attempt to manage something you can’t manage
— Nayib Bukele (@nayibbukele) February 16, 2022
El Salvador’s federal government passed the Bitcoin Law in June 2021. This made Bitcoin (BTC) a legal currency in the nation, requiring services to accept it as a method of payment.
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The law has actually seen some opposition from domestic legislators and the IMF, which advised President Bukele to rescind the Bitcoin Law many times, most just recently on Jan. 25. It has, naturally, been applauded by advocates of the world’s biggest crypto by market cap.