Three senators have introduced a bill that will mitigate the risks presented by adopting Bitcoin as legal tender in El Salvador. El Salvador implemented the Bitcoin Law last year. The law’s implementation has been met with criticism from global organizations such as the World Bank and the International Monetary Fund (IMF).
US proposes bill to mitigate against El Salvador Bitcoin Law
The proposed bill is dubbed the “Accountability for Cryptocurrency in El Salvador Act (ACES)”. The bill seeks to lower the risks associated with the use of BTC as legal tender. According to the three senators, the use of Bitcoin increased the risks of money laundering and terrorism financing.
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Senators Bill Cassidy, Jim Risch and Bob Menendez are promoting this bill. According to Senator Cassidy, the adoption of Bitcoin as the country’s currency could promote instances of money laundering and undermine the interests of the United States.
“El Salvador’s adoption of Bitcoin as legal tender raises significant concerns about the economic stability and financial integrity of a vulnerable US trading partner in Central America,” the senators wrote.
If this bill is approved, federal agencies will issue a report after around two months on various factors. One of these factors is the effects of the Bitcoin law on the country’s financial integrity. It will also assess whether the use of Bitcoin within the country complies with the Financial Action Task Force (FATF).
The second factor to be assessed is the cybersecurity infrastructure in El Salvador. It will assess the usage of cryptocurrencies within the country and any threat of hacks. It will also look at how the unbanked and the underprivileged interact with Bitcoin.
Bukele is not happy with the Bitcoin law
The president of El Salvador, Nayib Bukele, has lashed out at the three senators over this Bitcoin law. In a Twitter post, Bukele said that “You have 0 jurisdiction on a sovereign and independent nation. We are not your colony, your back yard, or your front yard,” he said.
Bukele has been adamant that El Salvador will not go back on the Bitcoin law. The Bitcoin law was implemented in September last year, and since then, businesses in the country have been forced to accept the digital asset as a means of payment.
The World Bank and the IMF have warned the country that the adoption of Bitcoin could pose a risk to financial stability. However, Bitcoin supporters have been at the frontline to support the Bitcoin Law.