US Senate Bill Aims to Resolve Risks to United States from El Salvador’s Bitcoin Law

A bunch of senators has come up with formal legislation in the United States Senate to look into and resolve the possible hazards and risks created by El Salvador’s mainstream adoption of Bitcoin as an authorized currency. The presented Accountability for Cryptocurrency in El Salvador Act (ACES) focuses on ideas to “mitigate probable risks to the US financial infrastructure”. The risks described in the legislation revolve around cases of money laundering and terrorism funding.

The bill was presented by Republican Senators Jim Risch and Bill Cassidy with signatures from Democratic Senator Bob Menendez. In an announcement on February 16th, Senator Risch claimed that El Salvador’s mainstream acquisition of Bitcoin as a legal tender has brought up several issues and concerns over the economic and financial probity of a rather volatile US trade associate in Central America.

Senator Cassidy goes on to explain that the recognition of Bitcoin, a virtual asset based on blockchain, can give way to several malpractices in the crypto space, like money laundering cartels. Consequently, the senator claims that the decision has been made overlooking the welfare of the United States. If the bill gets cleared in the Senate, it would offer an ultimatum of sixty days to Federal agencies to deposit an extensive report that examines the various elements of the Central American country’s capabilities concerning cybersecurity and financial soundness.

The constituents of the report are divided into various parts. Part one tries to examine and investigate how El Salvador established and implemented the Bitcoin law, and how will it try to reduce the hazards to cyber security. It also throws light on the Financial Action Task Force (FATF) pre-requisites, while trying to decipher how the new law will affect each and every person individually.

The following parts examine the country’s internet framework and estimate the extent to which crypto is utilized in El Salvador, along with quantifying and calculating the funds. The risk of hacking will also be evaluated, along with an analysis of the economical condition of the poor in the country.

After the authorization of these reports, the bill will induce some active plans from several agencies that will work according to the findings from the study. The President of El Salvador, President Nayib Bukele, responded aggressively to the Senate report, stating the fact that the United States did not enjoy any kind of jurisdiction on an independent country like El Salvador.

The government of El Salvador gave a nod to the Bitcoin Law back in June 2021, placing Bitcoin in a position as a legal currency in the nation.