US lawmakers focus on perceived risks of crypto adoption in El Salvador with reintroduced bill

Two US senators from opposite sides of the political aisle have reintroduced legislation starting in 2022 to reduce the perceived risks of El Salvador adopting bitcoin as legal currency.

Congressional records show that on May 11, Senator James Risch of Idaho and Senator Bob Menendez of New Jersey introduced a bill “to require a report on the adoption of cryptocurrency as legal tender in El Salvador.” The El Salvador Act, which Risch introduced in February 2022, just a few months after El Salvador’s Bitcoin Act goes into effect.

As the Washington Examiner reported on May 12, Risch introduced the bill as part of efforts to combat the use of cryptocurrency as legal tender, claiming it could “undermine economic and financial stability”. And can empower malicious actors.” Bitcoin (BTC) has been accepted as legal tender in El Salvador since September 2021, along with the national dual currency and the US dollar.

If passed, the bill could require federal agencies in the United States to report on El Salvador’s cybersecurity and financial stability capabilities, and how they could pass the United States Bitcoin bill. Country. The International Monetary Fund also warned the Central American nation in February of considering BTC as legal tender a risk to the country’s financial integrity and stability.

A previous version of the bitcoin-focused legislation introduced in the Senate passed the committee in April 2022. Lawmakers also introduced a companion bill in the House of Representatives, but according to congressional records, the legislation hasn’t changed in more than a year.

Connected: El Salvador’s Bitcoin Strategy Evolves With Bear Market in 2022

Nayib Bukele, President of El Salvador, directly attacked The last time the bill was introduced, US lawmakers like “Boomers” claimed on Twitter that they were trying to interfere with “a sovereign and independent nation”. Under Bukele, the country has adopted a number of pro-crypto policies, including plans to raise funds to build a “Bitcoin City” using BTC-backed bonds.

magazine: what is it like to use bitcoin in el salvador

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