US Senate Committee Advances Bill to Mitigate Risks From El Salvador Adopting Bitcoin as Legal Tender

The Senate measure to mitigate the risks from El Salvador adopting bitcoin arsenic ineligible tender has precocious successful the U.S. “As El Salvador has adopted bitcoin arsenic ineligible tender, it’s captious we mitigate risks to our fiscal system,” said 1 of the U.S. lawmakers who introduced the bill.

Bill to Mitigate Risks From Bitcoin Being Legal Tender successful El Salvador Passes Senate Committee

The U.S Senate Foreign Relations Committee (SFRC) has precocious the ‘‘Accountability for Cryptocurrency successful El Salvador Act’’ oregon ‘‘ACES Act.’’ The bill was introduced connected Feb. 16 by Senators Jim Risch (R-Idaho), Bob Menendez (D-N.J.), and Bill Cassidy (R-La.). It aims to mitigate the risks from El Salvador adopting bitcoin arsenic ineligible tender.

SFRC Ranking Member Senator Risch tweeted Wednesday:

As El Salvador has adopted bitcoin arsenic ineligible tender, it’s captious we mitigate risks to our fiscal system.

“The authorities passed by SFRC contiguous requires national agencies to analyse risks, including imaginable empowerment of atrocious actors & organized crime,” helium said.

The projected authorities requires a study from the State Department connected El Salvador’s adoption of bitcoin arsenic ineligible tender and a program to mitigate imaginable risks to the U.S. fiscal system. The study would see an investigation of El Salvador’s bitcoin instrumentality and the risks for cybersecurity, economical stability, and antiauthoritarian governance.

El Salvador adopted bitcoin arsenic a nationalist currency alongside the U.S. dollar successful September past year. Since then, the state has purchased 1,801 BTC altogether.

Responding to the Senate committee passing the bill, Salvadoran President Nayib Bukele tweeted:

Never successful my wildest dreams would I person thought that the US authorities would beryllium acrophobic of what we are doing here.

In a follow-up tweet, helium wrote: “The U.S. authorities does not basal for state and that is simply a proven fact. So we volition basal for freedom. Game on.”

Senator Bill Cassidy responded to Bukele’s tweet astir freedom. He wrote: “Salvadoran residents successful the United States don’t similar this policy. We are being responsive to their concerns. Perhaps they don’t spot a president who brags astir trading bitcoin ‘naked.'”

The U.S. is not the lone state acrophobic astir El Salvador’s bitcoin law. In November past year, Bank of England (BOE) Governor Andrew Bailey raised concerns astir bitcoin being utilized arsenic ineligible tender successful El Salvador.

Furthermore, the International Monetary Fund (IMF) has repeatedly urged the state to abandon bitcoin arsenic ineligible tender. According to the IMF, the costs of making BTC ineligible tender transcend the imaginable benefits.

El Salvador, however, does not spot a crushed to standard backmost its bitcoin law. In fact, President Bukele has predicted that two much countries volition follow BTC arsenic ineligible tender this year.

What bash you deliberation astir the U.S. measure to mitigate the risks of El Salvador adopting bitcoin arsenic ineligible tender? Let america cognize successful the comments conception below.

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