It has quite recently come to the attention of people that El Salvador has provided Bitcoin the legal tender and the entire world is pretty shocked by this particular news. Yes, there are many different nations that are pretty much crypto-friendly.
El Salvador is definitely one of those countries for sure. However, the effect of the Bitcoin Law in El Salvador might have an effect on the other nations and the United States of America definitely comes under the list.
Hence, 3 U.S. Senators have actually made the proposal to introduce a particular bill that would commission a pretty lengthy report that details all the inner processes and workings of the Bitcoin Law in El Salvador. The bill would also include a proper action plan in order to mitigate any risk.
According to top cryptocurrency news today, a group of US Senators has managed to introduce the legislation in the Senate of the US to mitigate all the possible risks that the country could face due to El Salvador adopting Bitcoin as the legal currency.
The proposed Accountability for Cryptocurrency in El Salvador Act (ACES) has the main goal of mitigating the potential risks that the financial system of the United States might face such as terrorism funding as well as money laundering.
The bill was created by Republican Senators Jim Risch as well as Bill Cassidy with some help from Democratic Senator Bob Menendez signing on. Senator Risch wrote in the announcement that he made on the 16th of February 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 wrote that “recognizing Bitcoin as official currency opens the door for money laundering cartels and undermines U.S. interests.” In case the bill is properly passed, there is no doubt that there will be some major changes that will be made in the system for sure.
For example, after the passing of the bill, the Federal Agencies will have just about 60 days in total to make the submission of a particular report that would provide all the aspects of the Nation of Central America and its abilities regarding financial stability and cybersecurity.
The first part of the report would assess how El Salvador developed and enacted the Bitcoin Law, how El Salvador will “mitigate the financial integrity and cyber security risks” from virtual assets, whether it meets Financial Action Task Force (FATF) requirements, the impact on individuals and businesses, and the effect crypto will have on its economy.
The next part of the report would describe El Salvador’s internet infrastructure and assess “the degree to which cryptocurrency is used” there, custody of funds and the potential for hacks, and the rate of financial access underprivileged or unbanked El Salvadorans enjoy.
Following the issuance of these reports, the bill would stipulate action plans from various agencies based on the findings.
El Salvador’s President Nayib Bukele gave a reaction against this apparent meddling in his country, tweeting “You have 0 jurisdictions on a sovereign and independent nation. We are not your colony, your back yard, or your front yard.”
The Bitcoin law was passed by the Government of El Salvador in the month of June 2021. After that, Bitcoin was considered to be a legal currency in this particular nation and hence businesses were forced to accept Bitcoin or BTC as a proper means for payment.
This particular law has definitely received some obstruction from the different domestic lawmakers as well as the IMF, which made a request to President Bukele to cancel the Bitcoin Law numerous times, the most recent effort was made on the 25th of January. It has, of course, been praised by proponents of the world’s largest crypto by market cap.