The United States Senate can account to monitor Bitcoin operations in El Salvador. The initiative, presented by Republican lawmakers Bill Cassidy, James Risch and Democrat Bob Menéndez, has already been passed by the Senate Foreign Relations Committee this week.
The bill, called the “Responsibility Law for Cryptocurrencies in El Salvador” or the “ACES Law,” would allow US agencies to track capital movements to the country in cryptocurrencies. However, the proposal is limited to transactions made within the US as they have no jurisdiction in El Salvador itself.
The bill now goes to the US Senate for discussion, including a comprehensive list of issues related to cryptocurrency operations in El Salvador. These include money transfers from the US, money laundering and money laundering risks, monetary policy and the finances of Salvadorans living in that country.
After the passing of the Bitcoin law in September 2021, El Salvador installed a network of Bitcoin ATMs in several US cities to allow Salvadoran immigrants to send remittances from the US, the country from which the largest volume of remittances to El Salvador is sent. Salvador is shipped.
Senators have argued that the law seeks to protect the U.S. financial system from the potential ill effects of the introduction of bitcoin as legal tender in El Salvador.
There is still no set date for discussion and approval of the bill in the US Congress. After the bill passed the first stage of approval in the Senate committee, President of El Salvador Nayib Bukele responded immediately via Twitter as usual.
“Never in my wildest dreams would I have thought that the United States government would be afraid of what we’re doing here,” the Salvadoran leader said, mocking Senator Bill Cassidy, the bill’s main promoter.
Senator Cassidythen responded to Bukele’s comments, saying:
“Residents of Salvador in the United States do not like this policy. We are responding to their concerns. Maybe they don’t trust a president who brags about trading Bitcoin ‘naked’.”
To which Bukele is joking replied again: “Sometimes on the toilet…”
In February, the three US senators asked the White House to investigate bitcoin operations in El Salvador. The proposal led to confrontation between Bukele and lawmakers, as the Central American president tweeted:
“We are not your neighborhood, your backyard or your front yard. Stay away from our internal affairs. Don’t try to control something you can’t control.”
Bukele’s showdown with the US comes as its controversial monetary policy regarding bitcoin is under intense scrutiny, with bitcoin prices remaining low.
In the meantime, On Thursday, the 24th, Bukele met with Binance CEO Changpeng Zhao, seeking support to better promote cryptocurrency in his country.
The Federal Reserve, for its part, has the process for the issue of the digital dollar, the US CBDC, which will compete with bitcoin at the request of US President Joe Biden.