The Senate bill that was aimed at mitigating the risks of the adoption of Bitcoin by El Salvador as legal tender has advanced in the United States. One of the lawmakers in the US who introduced the bill in question said that it is critical for the country to mitigate the risks of El Salvador’s adoption as legal tender to their financial system. The ACES Act, or the Accountability for Cryptocurrency in El Salvador Act’ has been advanced by the US Foreign Relations Committee (SFRC). Senators Bill Cassidy (R-La), Bon Menendez (D-N.J) and Jim Risch (R-Idaho) introduced the bill on February 16th.
The purpose of the bill is to mitigate the risks of the adoption of Bitcoin as legal tender by El Salvador. On Wednesday, Senator Risch, the SFRC Ranking Member said that mitigating the risks to the financial system of the US was of the utmost importance after the adoption of Bitcoin as legal tender in El Salvador. He said that the SFRC had passed legislation under which federal agencies would have to examine risks, which include that of organized crime and potentially empowering bad actors. The legislation that has been proposed asks the Statement Department of El Salvador to provide a report regarding their adoption as legal tender.
It has also asked for a plan that can help in mitigating the potential risks to the financial system in the United States. The report would provide a complete analysis of the bitcoin law implemented in El Salvador and the risks associated with democratic governance, economic stability and cybersecurity. Last year in September, El Salvador had made history when it had passed the law for adopting bitcoin as its national currency. Since then, the company had purchased bitcoin several times and currently owns a total of 1,801 BTC. NayibBukele, the President of El Salvador, also responded to the passing of the bill by the Senate Committee.
The president said that he had never thought that the government of the United States would be worried about what El Salvador is doing. He went on to say that the US government does not seem to support freedom, which has now been proven. He tweeted that they would do it instead. Senator Bill Cassidy also answered the tweet regarding freedom. He said that the policy was not appreciated by residents of El Salvador in the US. He said that they were simply responding to their concern.
He stated that the people appeared to be distrustful of a president who was bragging about trading bitcoin. It is also important to note that the US is not the only country that seems to be concerned about the bitcoin law in El Salvador. Last year in November, the Governor the Bank of England (BOE), Andrew Bailey, had also expressed concerns about the use of Bitcoin as legal tender. In addition, the International Monetary Fund (IMF) had also urged El Salvador repeatedly to abandon Bitcoin as its national currency a number of times. The IMF has said that the cost of this policy can outweigh the benefits.