U.S. Lawmakers Propose New Bill to Tackle El Salvador’s Bitcoin Move

U.S. representatives, Congresswoman Norma J. Torres and Congressman Rick Crawford, on Monday proposed a companion bill titled “Accountability for Cryptocurrency in El Salvador (ACES) Act.” The bill is geared towards minimizing the alleged risks associated with El Salvador’s Bitcoin law.

As per the bill, the State Department will be assigned to examine the risks that El Salvador Bitcoin adoption poses to cybersecurity, economic stability, and democratic governance in the country. The department will also come up with plans to minimize potential risks to the U.S. financial system.

Torres argued that although El Salvador is an independent state and can make its own decisions, the U.S. needs to safeguard itself against risks associated with El Salvador’s Bitcoin law.

“El Salvador is an independent democracy and we respect its right to self-govern, but the United States must have a plan in place to protect our financial systems from the risks of this decision, which appears to be a careless gamble rather than a thoughtful embrace of innovation,” she said.

Congressman Crawford also aired his view on the matter, saying that “El Salvador’s hasty decision to adopt Bitcoin as a legal tender causes concern for the stability of the U.S.-Salvadorian economic relationship.”

Recall that a similar bill was first proposed by U.S. Senators Jim Risch, Bill Cassidy and Bob Menendez in the country’s upper chamber in February. Following the bill, El Salvador’s President Nayib Bukele reacted by asking U.S. Senators to stay out of the country’s internal affairs.

El Salvador Facing Backlash For Its Bitcoin Law

Since adopting Bitcon as legal tender, El Salvador has continued to face a handful of criticism from organizations and financial institutions. In January, the International Monetary Fund (IMF) warned El Salvador of the risks associated with adopting Bitcoin and urged the Latin American nation to reverse its Bitcoin law decision.

Meanwhile, the backlash hasn’t stopped the country from moving forward with its Bitcoin adoption. Last November, the country revealed it will be constructing the world’s first crypto-powered city dubbed “Bitcoin City,” which will be backed by a $1 billion Bitcoin bond.

El Salvador’s finance minister, Alejandro Zelaya recently noted that the $1 billion Bitcoin bonds issuance is only being delayed by the Russia-Ukraine war.