Two members of the Home of Representatives have launched laws aimed toward mitigating the dangers to the USA monetary system as a consequence of El Salvador adopting Bitcoin (BTC) as authorized forex.
In a Monday announcement, California Consultant Norma Torres and Arkansas Consultant Rick Crawford proposed laws that may direct the State Division to create a plan to mitigate the potential dangers to the U.S. monetary system primarily based on an evaluation of the dangers to El Salvador’s “cybersecurity, financial stability and democratic governance” following the nation’s recognition of Bitcoin (BTC) as authorized tender in September 2021. The Accountability for Cryptocurrency in El Salvador Act is a companion invoice to bipartisan laws launched within the Senate in February.
The Senate invoice aimed to have the Secretary of State in addition to federal division and company heads report back to Congress inside 60 days on a plan to “mitigate any potential danger to the USA monetary system posed by the adoption of a cryptocurrency as authorized tender” in El Salvador and different nations that settle for the U.S. greenback — seemingly together with Ecuador, Micronesia, Palau, East Timor, Zimbabwe and the Marshall Islands. Torres cited the Worldwide Financial Fund’s stories that using Bitcoin as authorized tender carried “giant dangers” associated to monetary stability, monetary integrity and client safety.
“El Salvador is an unbiased democracy and we respect its proper to self-govern, however the USA will need to have a plan in place to guard our monetary methods from the dangers of this choice, which seems to be a careless gamble reasonably than a considerate embrace of innovation,” mentioned Torres.
Right this moment, I launched the Accountability for Cryptocurrency in El Salvador Act with @RepRickCrawford. El Salvador’s adoption of #Bitcoin just isn’t a considerate embrace of innovation, however a careless gamble that’s destabilizing the nation. https://t.co/Ag9K8fyHMb pic.twitter.com/4N8DN7895w
— Rep. Norma Torres (@NormaJTorres) April 5, 2022
Idaho Senator James Risch, the sponsor of the Senate invoice, said in February that El Salvador’s adoption of BTC as authorized tender raised “important issues concerning the financial stability and monetary integrity of a susceptible U.S. buying and selling companion in Central America.” Louisiana Senator Invoice Cassidy, one of many co-sponsors, claimed that the nation’s Bitcoin Regulation might “[open] the door for cash laundering cartels” and threaten the U.S. greenback’s dominance as the worldwide reserve forex.
In March, the invoice handed the Overseas Relations Committee and could also be headed to a full Senate vote. El Salvador President Nayib Bukele reacted to the introduction of laws in February by urging the USA to “keep out” of the nation’s inner affairs and to the invoice transferring ahead the next month by claiming “the U.S. Authorities DOES NOT stand for freedom.”
By no means in my wildest desires would I’ve thought that the US Authorities could be afraid of what we’re doing right here. pic.twitter.com/QgJPa70mn0
— Nayib Bukele (@nayibbukele) March 23, 2022
Associated: El Salvador: The way it began vs. the way it went with the Bitcoin Regulation in 2021
Since El Salvador’s Bitcoin Regulation went into impact, Bukele has used his Twitter account to announce a number of BTC buys, totaling 1,801 BTC as of January — value roughly $83 million on the time of publication. As well as, the Salvadoran authorities mentioned on March 23 that it will postpone issuing BTC-backed bonds aimed toward funding its Bitcoin Metropolis undertaking.
