A bill has been introduced by a group of U.S. senators, mandating the submission of reports on the adoption of Bitcoin as legal tender in El Salvador.

Senators James Risch, Bob Menendez, and Bill Cassidy have proposed the "Accountability for Cryptocurrency in El Salvador Act," which requires the Secretary of State, along with relevant Federal departments and agencies, to provide a comprehensive report on the implementation of Bitcoin as legal tender in El Salvador. 

The report will include an evaluation of El Salvador's regulatory structure and the potential ramifications of Bitcoin adoption on macroeconomic stability, democratic governance, and remittance flows from the United States to El Salvador.

Additionally, the legislation requires the development of a strategy to address and minimize any potential threats to the U.S. financial system arising from the adoption of Bitcoin or cryptocurrencies as legal tender in El Salvador or any other nation using the U.S. dollar as legal tender.

As per the bill, this plan must be presented to the relevant congressional committees within 90 days following the submission of the report specified in subsection (a).

In June 2021, the Salvadoran government enacted the Bitcoin Law, granting legal tender status to Bitcoin within the country. The decision drew criticism from certain experts who expressed concerns about potential economic instability. Others viewed the new law as a potential catalyst for wider adoption of Bitcoin in the region. 

Despite the ensuing controversy, El Salvador has remained steadfast in its commitment to implementing its Bitcoin adoption plans.

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