US Lawmakers Introduce Bill to Mitigate Risks From El Salvador Adopting Bitcoin as Legal Tender

Several U.S. lawmakers have introduced a bill to mitigate the risks from El Salvador adopting bitcoin as legal tender. “El Salvador recognizing bitcoin as official currency opens the door for money laundering cartels and undermines U.S. interests,” said a U.S. senator.

US Concerned About Risks From El Salvador’s Bitcoin Law

The U.S. Senate Committee on Foreign Relations announced Wednesday that Senators Jim Risch (R-Idaho), Bob Menendez (D-N.J.), and Bill Cassidy (R-La.) have introduced a bill titled the ‘‘Accountability for Cryptocurrency in El Salvador Act’’ or ‘‘ACES Act.’’

The proposed legislation requires a report from the State Department on El Salvador’s adoption of bitcoin as legal tender and “a plan to mitigate potential risks to the U.S. financial system,” the announcement details. The State Department report would include an analysis of El Salvador’s bitcoin adoption as legal tender and the risks for cybersecurity, economic stability, and democratic governance in El Salvador.

Senator Risch commented:

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.

He added: “This new policy has the potential to weaken U.S. sanctions policy, empowering malign actors like China and organized criminal organizations. Our bipartisan legislation seeks greater clarity on El Salvador’s policy and requires the administration to mitigate potential risk to the U.S. financial system.”

Senator Cassidy opined:

El Salvador recognizing bitcoin as official currency opens the door for money laundering cartels and undermines U.S. interests.

OK boomers… You have 0 jurisdiction on a sovereign and independent nation. We are not your colony, your back yard or your front yard. Stay out of our internal affairs. Don’t try to control something you can’t control.

El Salvador adopted bitcoin as legal tender alongside the U.S. dollar in September last year. Since then, the country has purchased 1,801 BTC altogether.