US Senators Reintroduce ‘Accountability for Cryptocurrency in El Salvador (ACES) Act’

US Senators Reintroduce ‘Accountability for Cryptocurrency in El Salvador (ACES) Act’ – The U.S. Senate has seen the reintroduction of the “Accountability for Cryptocurrency in El Salvador Act,” referred to as the “ACES Act.” Senators Jim Risch and Bob Menendez are spearheading this legislative proposal, which aims to investigate the implementation of bitcoin as a recognized currency in El Salvador and its potential impact on the nation’s financial stability. 

The bill, previously presented to Congress on March 23, 2022, seeks to scrutinize the procedure followed to establish bitcoin as legal tender in El Salvador and analyze its implications for the country’s economy. During the reintroduction of the ACES Act, U.S. Senator Jim Risch emphasized the importance of evaluating the potential consequences of adopting cryptocurrency as a recognized form of legal tender.

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He stated: “We must seek greater clarity on how the adoption of bitcoin as legal tender may impact El Salvador’s financial and economic stability, as well as El Salvador’s capacity to effectively combat money laundering and illicit finances.” Should the act be implemented, it would require the Secretary of State and the Secretary of the Treasury to generate a comprehensive report concerning the acceptance of bitcoin as legal tender in El Salvador. 

The report would encompass an evaluation of the legislation enabling this adoption, the effects it has on the individual economy of Salvadorans, and the potential shortcomings in adhering to the Financial Action Task Force (FATF) guidelines pertaining to combating money laundering and financing of terrorism.

Additionally, the report should encompass an analysis of the potential impact of introducing bitcoin on El Salvador’s relationship with multilateral financial institutions such as the World Bank and the International Monetary Fund, as well as its overall international financial stability.

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Also, the report must thoroughly examine the potential implications of bitcoin adoption on the flow of remittances between El Salvador and the United States, as well as its potential to diminish the reliance on the U.S. dollar within the country. Salvadoran President Nayib Bukele had expressed his disbelief on the text of the ACES Act before, stating: “Never in my wildest dreams would I have thought that the U.S. Government would be afraid of what we are doing here.”

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