US Lawmakers Propose a Bill That Will Mitigate Risks from El Salvador’s Bitcoin Use
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The world has been closely watching the situation in El Salvador ever since the country decided to drop the Dollar and adopt Bitcoin in full. It has led to an outrage by central banks all over the world, which is typical – banks don’t like DeFi. And while the West has been rooting for the experiment to fail, El Salvador seems to be doing just fine for now.
On Monday, a pair of members of the House of Representatives proposed drafting a bill that will protect the US financial system from the risks of El Salvador’s Bitcoin adoption. It shows that El Salvador’s decision is a thorn in the USA’s side.
Accountability for Cryptocurrency in El Salvador
The newly proposed ACES Act has the role to protect US citizens and lower the potential risks to the country related to El Salvador’s move. It was introduced by Rep. Norma J. Torres and Rep. Rick Crawford from the House Permanent Select Committee that works on protecting US citizens from financial scams, terrorism, and more.
According to a press release, the international community has fully acknowledged the potential danger of Bitcoin adoption in the USA. As an independent democracy, the USA respects El Salvador’s right to self-govern, but strongly condemns the adoption of Bitcoin as legal currency. Due to that, the Committee has introduced the new act which will protect the country’s financial systems from the risks of El Salvador’s decision. As the report called it, it was more of a careless gamble rather than an embrace of innovation.
With the proposed legislation, the State Department will conduct a thorough analysis of El Salvador’s Bitcoin adoption. It will also highlight the potential risks on economic stability, cybersecurity, and democratic governance. The bill also asks for a plan that will reduce the risk to the US financial system.
The IMF is Mad as Well
Everyone thought El Salvador’s decision is a big gamble that will self-destruct and plunge the country into chaos in just a couple of months. It’s been much longer than that and the country is just fine. Before the US introduced an act to protect its financial system from this decision, the IMF called it an ‘inherent risk to consumer protection and financial stability’.
Furthermore, the IMF used the decision as the basis of the decision not to loan any money to El Salvador in the future. The country asked the IMF for a loan to pay off its debts, and after it was declined, president Nayib Bukele turned his sights toward Bitcoin.
Bukele, who isn’t shy on sharing his opinion on Twitter, immediately addressed the US move in a cynical tweet. He believes that these moves prove that the country is on the right track. With prices rising around the world and financial systems crumbling, El Salvador’s decision might prove big in the future, especially as it seems that Bitcoin’s price in the past month has been much more stable than the price of crude oil.
