El Salvador made the headlines last year when it adopted the flagship crypto asset as a legal tender and became the first country in the world to do so. Even though this was quite an innovative step, it wasn’t supported by everyone, in the country or the world.
People have been skeptical about the benefits of adopting BTC as a legal tender and some even believe it to have drawbacks in the future.
According to reports, three senators in the USA have proposed a new bill that addresses the inner workings of BTC law in El Salvador and plans to limit the risks posed by the law. Let’s find out more about the proposed bill and how the Central American country has responded.
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Details of the U.S. Bill and El Salvador’s Response
The bill regarding Bitcoin Law in El Salvador has been proposed by a bipartisan group of senators in the USA. The purpose of the bill is to reduce the risks that can arise due to the adoption of Bitcoin as a legal tender in El Salvador.
The proposed bill is called Accountability for Cryptocurrency in El Salvador Act (ACES) and has been introduced by Democratic Senator Bob Menendez and Republican Senators Bill Cassidy and Jim Risch.
The potential risks that can be caused by El Salvador’s BTC Law include money laundering and terrorism funding, according to the proposed bill.
Senator Risch recently announced 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.”
According to Senator Cassidy, recognizing BTC as a legal tender can threaten U.S. interests along with the risks mentioned above.
There are two parts of the proposed bill that focus on different aspects.
The first part will assess:
- How the BTC Law was developed and implemented in the country?
- How does the country plan on tackling cyber security risks and more?
- If the BTC Law meets the requirements of the Financial Action Task Force.
- How does it impact the economy of the country, businesses and individuals?
The second part will describe:
- Custody of funds
- Internet infrastructure of El Salvador
- Potential of hacks
- Rate of financial access underprivileged
The President of El Salvador, Nayib Bukele, tweeted today in response to the bill proposed by the USA. His tweet stated that the US had no jurisdiction over an independent nation and should, therefore, cease all attempts to control it.
Are you a Potential Crypto Investor?
Bitcoin is the largest crypto asset in the world and it is most prominent, thanks to the support it has received from major and minor entities in the market. The fact that it was adopted as a legal tender in El Salvador says a lot about the utility and significance of the crypto king.
The price of the flagship cryptocurrency is also seen to fluctuate from time to time. However, if you are interested in buying BTC, make sure you take a look at the price movements first and then invest.
Bitcoin is currently trading at $43,531 (at the time of writing).
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