Two members of Congress from the country said that the United States is at risk by introducing bitcoin as a legal currency in El Salvador. For this reason, Congressmen Norma J. Torres and Rick Crawford yesterday introduced the El Salvador Cryptocurrency Accountability Act (ACES). What does this mean?
Not well thought out
In short, Torres and Crawford want to use this “verb” to research potential risks, and then build a plan to protect the United States based on that. They mainly rely on the principle that the Bitcoin standard in El Salvador is not well studied.
“El Salvador is an independent democracy and we respect its right to autonomy, but the United States must have a plan to protect our financial systems from the risks of this decision, which appears to be a careless gamble rather than a thoughtful gamble embracing innovation,” Torres said.
On the other hand, it also brought a lot to El Salvador. Previously, 70% of Salvadorans did not have a bank account. Since the introduction of bitcoin, these residents can pay with a bitcoin wallet. There are other benefits, but the risks for the United States are more significant.
This legislation is intended to ensure that the State Department analyzes cybersecurity risks. In addition, they also want to examine the economic stability and democratic governance of El Salvador.
Based on this analysis, they want to put forward a plan to protect the risks to the United States because, according to Crawford, the popularity of cryptocurrencies creates “necessary regulatory reform and consumer protection.”
El Salvador’s hasty decision to adopt bitcoin as a legal currency raises concerns about the stability of the economic relationship between the United States and El Salvador. Our task as policymakers is to better understand the potential impact of the adoption of bitcoin as legal tender in El Salvador and what the United States can learn from it in the future.”
The IMF wants El Salvador to stop
With this legislation, they build on previous decisions of the International Monetary Fund and Moody’s Sovereign Risk Group’s estimate that El Salvador lost $22 million in a single dip.
The International Monetary Fund has attempted to stop Bitcoin as legal tender in El Salvador. It would pose a significant risk to financial stability and consumer protection. This was the reason why the Fund did not provide loans to El Salvador.
The head of state, Neb Bukele, is not listening. As he often shows on Twitter, he is not a fan of the IMF.
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