U.S. Senate's Bill Regarding El Salvador’s Bitcoin Legal Tender Status
On Wednesday, the bill titled “El Salvador Cryptocurrency Accountability Act,” was passed through committee and will soon move on to the U.S. Senate for a vote. Also referred to as “ACES,” the bill was originally introduced back in February, and it attempts to address potential risks associated with El Salvador’s adoption of Bitcoin as a legal tender.
El Salvadoran President, Nayib Bukele, is not happy with the recent actions taken by the United States. He took his thoughts to Twitter on Wednesday saying, "Never in my wildest dreams did I think the US government would be scared of what we’re doing here.”
The Biden Administration has recently put an executive order in place that, in part, directs U.S. government agencies to begin assessing risks associated with the use of digital assets and creating plans tailored toward minimizing those risks. Furthermore, this bill was created out of concern that El Salvador’s adoption of Bitcoin as legal tender will pose certain risks to the U.S. financial system.
Europe Times News reports that both the World Bank and IMF have expressed concern over El Salvador’s Bitcoin Law in the past. The country has ignored all recommendations, and even recently announced the launch of a “billion-dollar Bitcoin bond.”
Timeline of Events
If passed, the bill would require the Secretary of State and all other relevant agencies to submit an analysis of El Salvador’s adoption plans within 60 days.
Then, 90 days after the initial report is submitted, a plan will be submitted to “mitigate any risk to the United States financial system.”
270 days after the initial analysis is submitted, an update will be due, which is to include a detailed report of any “significant development” as to the associated risks to the United States’ financial system.