"The united states should have a thought in place to shield our money systems from the risks of El Salvador's call," said Representative norma Torres.
Two members of the House of Representatives have introduced legislation due to mitigating the risks to the united states financial system due to El Salvador adopting Bitcoin (BTC) as legal currency.
In a Mon announcement, California Representative norma Torres and Arkansas Representative Rick Crawford projected legislation that might direct the State Department to make a thought to mitigate the potential risks to the U.S. national economy supported an analysis of the risks to El Salvador’s “cybersecurity, economic stability and democratic governance” following the country's recognition of Bitcoin (BTC) as legal tender in September 2021. The accountability for Cryptocurrency in El Salvador Act may be a companion bill to bipartisan legislation introduced within the Senate in Feb.
The Senate bill aimed to possess the Secretary of State still as federal department and agency heads report to Congress at intervals financial system days on a thought to "mitigate any potential risk to the united states financial system posed by the adoption of a cryptocurrency as legal tender" in El Salvador and different countries that settle for the U.S. dollar — ostensibly as well as South American nation, Micronesia, Palau, East Timor, zimbabwe and therefore the Marshall Islands. Torres cited the International financial Fund’s reports that the utilization of Bitcoin as monetary system carried “large risks” related to monetary stability, monetary integrity and shopper protection.
“El Salvador is an freelance democracy and that we respect its right to self-govern, however the u. s. should have a thought in situ to guard our monetary systems from the risks of this call, that seems to be a careless gamble instead of a thoughtful embrace of innovation,” said Torres.
Idaho senator James Risch, the sponsor of the Senate bill, said in Feb that El Salvador’s adoption of BTC as tender raised “significant issues regarding the economic stability and money integrity of a vulnerable U.S. trading partner in Central America.” Louisiana legislator Bill Cassidy, one in all the co-sponsors, claimed that the country’s Bitcoin Law might “[open] the door for hiding cartels” and threaten the U.S. dollar’s dominance because the international reserve currency.
In March, the bill passed the Foreign Relations Committee and should be headed to a full Senate vote. El Salvador President Nayib Bukele reacted to the introduction of legislation in Feb by urging the us to “stay out” of the country’s internal affairs and to the bill moving forward the subsequent month by claiming “the U.S. Government doesn't indicate freedom.”
( Turner Wright, Cointelegraph, 2022 )