US Senators Propose Law to Investigate Effects of Bitcoin Experiment in El Salvador

Nayib Bukele

It seems that the US Congress is starting to become interested – or concerned – about El Salvador’s acceptance of Bitcoin as legal tender. Senators James Risch, Bob Menendez and Bill Cassidy have introduced a bill titled the “Accountability for Cryptocurrency in El Salvador Act” (or “ACES” act) to limit the effects of the country’s new law on itself and the United States. to check.

Keep an eye on El Salvador

The bill was introduced on February 18, but came into the limelight today after El Salvador’s President Nayib Bukele expressed shock about it. “Never in my wildest dreams did I think the US government would be afraid of what we’re doing here,” he said tweeted

While the bill doesn’t explicitly state “fear,” it does reflect a renewed wariness among politicians about how influential cryptocurrencies can be in the world. In fact, a provision in Section 2 calls for examining the “potential for reduced El Salvador’s use of the US dollar” in light of the Bitcoin law.

It would also require federal departments to send a plan to Congress within 90 days to mitigate the effects of the adoption of crypto legal tender on the United States by any country that already uses the dollar for such purposes.

Like so many authorities today, the senators are even calling for an investigation into how El Salvador’s crypto adoption could help countries like Russia evade US sanctions. But unlike Elizabeth Warren’s bill on the subject, this legislation has Republican support.

Taking Bitcoin Seriously

Some politicians ranging from Hillary Clinton to Donald Trump have long warned of Bitcoin’s threat to the dollar’s global supremacy. However, it is only in light of the conflict between Russia and Ukraine and its economic fallout that regular talks have begun about the dollar’s weakness and Bitcoin’s strength in these circumstances.

It may not be a coincidence that there are rumors of many more countries considering using Bitcoin as legal tender in addition to El Salvador. It would also explain President Biden’s “urgency” in examining CBDC development in his recent executive order, with the goal of preserving the dollar’s status as a world reserve currency.

El Salvador has been criticized for months by groups like the International Monetary Fund and the World Bank over Bitcoin. However, President Bukele has consistently defied such adversaries and maintained his optimistic enthusiasm.

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