A new bill aims to “mitigate the risks” that El Salvador’s bitcoin law poses to the US.

A bipartisan group of senators has introduced legislation in the United States Senate aimed at mitigating the perceived risks of adopting Bitcoin (BTC) as El Salvador’s legal currency.

El Salvador’s Cryptocurrency Liability Act (ACES) proposal aims to “mitigate the potential risks to the financial system of the United States.”such as money laundering and terrorist financing.

The bill was introduced by Senators James Risch and Bill Cassidy, with Bob Menéndez signing it. Senator Risch wrote in Wednesday’s announcement:

“El Salvador’s acceptance of bitcoin as legal tender raises significant concerns about the economic stability and financial integrity of a vulnerable trading partner of the United States in Central America.”

A new bill aims to “mitigate the risks” that El Salvador’s bitcoin law poses to the US.
A new bill aims to “mitigate the risks” that El Salvador’s bitcoin law poses to the US.

The Senator Cassidy wrote that “recognition of Bitcoin as official currency opens the door to money laundering cartels and undermines US interests.”

If the law passes, federal agencies would have 60 days to submit a report assessing various aspects of the Central American nation’s cybersecurity and financial stability.

The first part of the report would assess how El Salvador developed the Bitcoin Act and how El Salvador will mitigate “the financial integrity and cybersecurity risks” of digital assetsif you meet the requirements of the Financial Action Task Force, the impact on individuals and businesses, and the impact cryptocurrencies will have on your economy.

The next part of the report would describe El Salvador’s internet infrastructure and assess “the extent of cryptocurrency usage” in that country. the custody of funds, the potential for hacking, and the rate of financial access enjoyed by underprivileged or unbanked Salvadorans.

After publication of these reports The bill would establish interagency action plans based on the findings.

Salvadoran President Nayib Bukele responded to the alleged interference in his country, tweet: “You have 0 jurisdiction over a sovereign and independent nation. We are not your colony, not your front yard or back yard.”

The government of El Salvador passed the Bitcoin Act in June 2021, making Bitcoin a legal currency in the country. and subsequently forcing companies to accept it as a means of payment.

The law met with some opposition from national legislators and the International Monetary Fund.which has repeatedly urged President Bukele to repeal the bitcoin law, most recently on Jan. 25. Of course, it was praised by supporters of the largest cryptocurrency in the world by market cap.

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