US Senate Committee Advances Bill to Mitigate Risks From El Salvador Adopting Bitcoin as Legal Tender

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US Senate Committee Advances Bill to Mitigate Risks From El Salvador Adopting Bitcoin as Legal Tender – The United States Senate has advanced a bill to reduce the risks of El Salvador adopting bitcoin as legal cash. “Now that El Salvador has recognized bitcoin as legal cash, it’s important that we protect our financial system,” one of the bill’s proponents stated.

The “Accountability for Cryptocurrency in El Salvador Act,” or “ACES Act,” has been advanced by the US Senate Foreign Relations Committee (SFRC). Senators Jim Risch, Bill Cassidy, and Bob Menendez introduced the bill on February 16. Its goal is to reduce the dangers associated with El Salvador’s use of bitcoin as legal tender.

Senator Risch, a member of the SFRC, tweeted on Wednesday:

“Now that El Salvador has recognized bitcoin as legal cash, we must prevent risks to our financial system.”

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“The SFRC-passed legislation requires government agencies to analyze vulnerabilities, including the possibility of bad actors and organized crime gaining power,” he said.

The bill calls for a report from the State Department on El Salvador’s use of bitcoin as legal tender, as well as a plan to mitigate possible financial system vulnerabilities in the United States.

El Salvador’s bitcoin law would be examined, as well as the implications for economic stability, cybersecurity, and democratic government.

In September of last year, El Salvador made bitcoin a national currency alongside the US dollar. The country has purchased a sum of 1,801 BTC since then.

Salvadoran President Nayib Bukele tweeted in response to the bill’s passed by a Senate committee:

“Never in my wildest thoughts did I imagine the US government would be concerned about what we’re doing here.”

In a follow-up tweet, he wrote, “The United States government doesn’t really stand for freedom, and that is a confirmed reality.” As a result, we will fight for our liberties.

Senator Bill Cassidy responded to Bukele’s tweet on freedom. “El Salvadorans in the United States do not accept this strategy,” he continued. We’re paying attention to their concerns. They may be wary of a president who boasts about trading bitcoin “naked.”

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US Senate Committee Advances Bill to Mitigate Risks From El Salvador Adopting Bitcoin as Legal Tender – El Salvador’s bitcoin law is causing alarm in more than one countries. Andrew Bailey, Governor of the Bank of England (BOE), expressed concern about bitcoin being used as legal cash in El Salvador in November of last year.

Furthermore, the International Monetary Fund (IMF) has encouraged the country to stop using bitcoin as legal cash on numerous occasions. According to the IMF, the costs of making Bitcoin legal tender exceed the benefits.

El Salvador, on the other hand, sees no reason to modify its bitcoin laws. President Bukele has forecast that BTC will be used as legal tender in two more countries this year.

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