US lawmakers target perceived risks of crypto adoption in El Salvador with reintroduced bill


Two United States Senators from reverse sides of the political aisle have reintroduced laws from 2022 geared toward mitigating perceived dangers posed by El Salvador’s adoption of Bitcoin as a authorized forex.

Congressional data showed Idaho Senator James Risch and New Jersey Senator Bob Menendez launched “a invoice to require reviews on the adoption of cryptocurrency as authorized tender in El Salvador” on Could 11. The laws gave the impression to be a second try on the Accountability for Cryptocurrency in El Salvador Act, which Risch introduced in February 2022, mere months after El Salvador’s Bitcoin Regulation went into impact.

In accordance with a Could 12 report from the Washington Examiner, Risch introduced the invoice as a part of efforts to struggle utilizing cryptocurrency as authorized tender, claiming it may “weaken financial and monetary stability and empower malign actors.” Bitcoin (BTC) has been accepted as legal tender in El Salvador alongside the nationwide colon forex and the U.S. greenback since September 2021.

If handed, the invoice may require federal businesses in america to report on El Salvador’s capabilities in cybersecurity and monetary stability, and the way these could have led to the passage of the nation’s Bitcoin Regulation. The Worldwide Financial Fund additionally warned the Central American ​​nation in February to contemplate the chance of BTC as authorized tender on the nation’s monetary integrity and stability.

The earlier model of the Bitcoin-focused laws launched within the Senate handed by way of committee in April 2022. Lawmakers within the Home of Representatives additionally launched a companion invoice, however in line with congressional data the laws has not moved in additional than a 12 months.

Associated: El Salvador’s Bitcoin strategy evolved with the bear market in 2022

El Salvador’s President Nayib Bukele immediately attacked U.S. lawmakers as “boomers” on Twitter the final time the invoice was launched, claiming they have been trying to intrude with “a sovereign and impartial nation.” Underneath Bukele, the nation has adopted many pro-crypto insurance policies, together with plans to lift funds to assemble a ‘Bitcoin metropolis’ utilizing BTC-backed bonds.

Journal: What it’s actually like to use Bitcoin in El Salvador