A bipartisan group of senators has submitted legislation to the US Senate aimed at reducing the perceived risks associated with El Salvador’s adoption of Bitcoin as a legal currency.
El Salvador’s proposed Cryptocurrency Accountability Act (ACES) aims to “reduce potential risks to the US financial system” such as money laundering and terrorist financing.
The bill was introduced by Republican Senators Jim Rish and Bill Cassidy, and Democratic Senator Bob Menendez signed it into law. Senator Rish wrote in a February 16 statement that:
“El Salvador’s acceptance of Bitcoin as legal tender raises serious concerns about the economic stability and financial integrity of a vulnerable US trading partner in Central America.”
Senator Cassidy wrote that “the recognition of Bitcoin as the official currency opens the door for money laundering cartels and undermines US interests.”
If the bill passes, federal agencies will have 60 days to submit a report assessing some aspects of the Central American nation’s cybersecurity and financial stability capabilities.
The first part of the report will assess how El Salvador drafted and enacted the Bitcoin Law, how El Salvador will “mitigate financial integrity and cybersecurity risks” from virtual assets, whether it complies with Financial Action Task Force (FATF) requirements, the impact on individuals and businesses, as well as the impact of cryptocurrencies on their economies.
The next part of the report will describe El Salvador’s Internet infrastructure and assess the “degree of cryptocurrency use”, the storage of funds and the possibility of hacking, as well as the level of access to finance for low-income or unbanked residents of El Salvador.
After the publication of these reports, the bill will provide action plans for various agencies based on the results.
Salvadoran President Nayib Bukele reacted to the alleged interference in his country by tweeting: “You have no jurisdiction over a sovereign and independent country. We are not your colony, your backyard or your front yard.”
Okay boomers… You have no jurisdiction over a sovereign and independent nation. We are not your colony, your backyard or your front yard. Stay away from our internal affairs. Don’t try to control what you can’t control https://t.co/pkejw6dtYn — Nayib Bukele (@nayibbukele) February 16, 2022
The El Salvadoran government passed the Bitcoin Law in June 2021. This made Bitcoin (BTC) the legal currency in the country, forcing businesses to accept it as a means of payment.
Related: What is shaping the future of the institutional crypto market?
The law met with resistance from local lawmakers and the IMF, which has called on President Bukele many times to repeal the bitcoin law, most recently on January 25. It has certainly been praised by the proponents of the world’s largest cryptocurrency by market cap.
A bipartisan group of senators has submitted legislation to the US Senate aimed at reducing the perceived risks associated with El Salvador’s adoption of Bitcoin as a legal currency.
El Salvador’s proposed Cryptocurrency Accountability Act (ACES) aims to “reduce potential risks to the US financial system” such as money laundering and terrorist financing.
The bill was introduced by Republican Senators Jim Rish and Bill Cassidy, and Democratic Senator Bob Menendez signed it into law. Senator Rish wrote in a February 16 statement that:
“El Salvador’s acceptance of Bitcoin as legal tender raises serious concerns about the economic stability and financial integrity of a vulnerable US trading partner in Central America.”
Senator Cassidy wrote that “the recognition of Bitcoin as the official currency opens the door for money laundering cartels and undermines US interests.”
If the bill passes, federal agencies will have 60 days to submit a report assessing some aspects of the Central American nation’s cybersecurity and financial stability capabilities.
The first part of the report will assess how El Salvador drafted and enacted the Bitcoin Law, how El Salvador will “mitigate financial integrity and cybersecurity risks” from virtual assets, whether it complies with Financial Action Task Force (FATF) requirements, the impact on individuals and businesses, as well as the impact of cryptocurrencies on their economies.
The next part of the report will describe El Salvador’s Internet infrastructure and assess the “degree of cryptocurrency use”, the storage of funds and the possibility of hacking, as well as the level of access to finance for low-income or unbanked residents of El Salvador.
After the publication of these reports, the bill will provide action plans for various agencies based on the results.
Salvadoran President Nayib Bukele reacted to the alleged interference in his country by tweeting: “You have no jurisdiction over a sovereign and independent country. We are not your colony, your backyard or your front yard.”
Okay boomers… You have no jurisdiction over a sovereign and independent nation. We are not your colony, your backyard or your front yard. Stay away from our internal affairs. Don’t try to control what you can’t control https://t.co/pkejw6dtYn — Nayib Bukele (@nayibbukele) February 16, 2022
The El Salvadoran government passed the Bitcoin Law in June 2021. This made Bitcoin (BTC) the legal currency in the country, forcing businesses to accept it as a means of payment.
Related: What is shaping the future of the institutional crypto market?
The law met with resistance from local lawmakers and the IMF, which has called on President Bukele many times to repeal the bitcoin law, most recently on January 25. It has certainly been praised by the proponents of the world’s largest cryptocurrency by market cap.
