• US lawmakers have reintroduced a bill to monitor the adoption of cryptocurrency in El Salvador as legal tender.
• The legislation is an attempt at the Accountability for Cryptocurrency in El Salvador Act, which was introduced after the country’s Bitcoin Law was passed.
• The proposed bill could require federal agencies in the US to report on El Salvador’s cybersecurity and financial stability capabilities, and how they led to the passage of the Bitcoin Law.
US Lawmakers Target Risks of Crypto Adoption in El Salvador
Two United States Senators from opposite sides of the political aisle have reintroduced legislation from 2022 aimed at mitigating perceived risks posed by El Salvador’s adoption of Bitcoin (BTC) as a legal tender.
Background on El Salvador’s Bitcoin Law
Congressional records show Idaho Senator James Risch and New Jersey Senator Bob Menendez introduced “a bill to require reports on the adoption of cryptocurrency as legal tender in El Salvador” on May 11. The legislation appeared to be a second attempt at the Accountability for Cryptocurrency in El Salvador Act, which Risch introduced in February 2022, mere months after El Salvador’s Bitcoin Law came into effect. According to a May 12 report from the Washington Examiner, Risch introduced the bill as part of efforts to fight using cryptocurrency as legal tender, claiming it could “weaken economic and financial stability and empower malign actors.” Bitcoin has been accepted as legal tender in El Salvador alongside the U.S. dollar since September 2021.
Proposed Bill Could Require Federal Agencies To Report On Crypto Use In Country
If passed, the bill could require federal agencies in the United States to report on El Salvador’s cybersecurity and financial stability capabilities, and how these may have led to the passage of its Bitcoin Law. The International Monetary Fund also warned Central American nation about potential risks associated with BTC being used as a legal tender back in February 2022.
Previous Version Of Legislation Passed Through Senate Committee In April 2022
The previous version of this bitcoin-focused legislation introduced into Senate passed through a committee back April 2022 while lawmakers in House Representatives also presented companion bill but according congressional records legislation has not moved more than one year now .
El Salvadors President Criticized U.S Legislators Over Bill
El Salvador’s President Nayib Bukele directly attacked U.S legislators over this proposed bill terming them “boomers” claiming they were attempting interfere with “sovereignty”of his nation when last time this same proposal was presented .