On May 11, Senators Bob Menendez and Jim Risch reintroduced the Accountability for Cryptocurrency in El Salvador (ACES) Act in the United States Senate. The purpose of this act is to periodically oversee the process of Bitcoin adoption in the Latin American country.
According to the Senate’s statement, the bill aims to assess the impact of BTC on the economic stability and governance of the Central American country. It also seeks to analyze potential risks related to cybersecurity and malicious actors.
Legislation demands reports on Bitcoin’s use and impact on stability and remittances
The reports must include detailed information about the flow of cryptocurrency remittances sent from the United States to El Salvador. This is to understand the risks associated with using BTC for illicit activities.
The bill was initially introduced in Congress in February 2022 by Senators Jim Risch, Menendez, and Cassidy. Risch stated that adopting Bitcoin as a legal tender in El Salvador “raises significant concerns about the economic stability and financial integrity of a vulnerable U.S. trading partner in Central America.”
On the other hand, Cassidy emphasized that if the U.S. wants to combat money laundering, it “must tackle this issue head-on.” However, it seems Congress does not share the senators’ opinion, as the bill has not been discussed again until now.
The proposed plan aims to mitigate potential risks to the U.S. financial system
One year after introducing the bill and not receiving a favourable response, Senator Risch continues to assert that the use of cryptocurrencies “as legal tender could weaken economic and financial stability and empower malign actors.”
Similarly, Risch emphasized that the interests of the U.S. are to ensure prosperity and economic transparency in Central America, gaining a clearer understanding of how the adoption of BTC can affect the financial and economic stability of El Salvador.
However, considering the geopolitical and macroeconomic scenario of the U.S., it could be said that the senators want to study the impact of BTC in El Salvador to understand better how implementing cryptocurrencies as legal tender can affect the country’s financial stability.
Perhaps, having access to such data could help them comprehend the potential advantages and disadvantages of implementing a CBDC based on the dollar.
Currently, the President of El Salvador, Nayib Bukele, has not commented on the bill’s reintroduction. This might be because he is more focused on continuing to drive technological innovations and the adoption of cryptocurrencies rather than responding to politicians from a country with no jurisdiction over his own.
