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US Legislators Revive Bill Concerning El Salvador's Crypto Adoption
Two US Senators from different political backgrounds have revived a bill from 2022, with the intent of alleviating perceived threats associated with El Salvador's decision to adopt Bitcoin as a legal currency.
Congressional records reveal that Senator James Risch of Idaho and Senator Bob Menendez of New Jersey tabled a bill on May 11th that calls for reports on the adoption of cryptocurrency as legal tender in El Salvador. This seems to be a renewed effort at the Accountability for Cryptocurrency in El Salvador Act, initially proposed by Risch in February 2022, shortly after the enactment of El Salvador's Bitcoin Law.
The Stance Against Crypto as Legal Tender
A report from the Washington Examiner on May 12th stated that Risch proposed this bill as part of his initiative to combat the use of cryptocurrency as legal tender. He argued that it has the potential to "undermine economic and financial stability and give malevolent actors the upper hand." Since September 2021, Bitcoin has been accepted as legal tender in El Salvador, alongside the U.S. dollar.
Implications of the Bill if Passed
Should the bill be passed, it could necessitate federal agencies in the United States to assess El Salvador's cybersecurity and financial stability competencies, and how these may have contributed to the implementation of the country's Bitcoin Law. The International Monetary Fund cautioned the Central American country in February to take into account the potential impact of BTC as a legal tender on its financial integrity and stability.
Previous Attempts and Reactions to the Bill
The prior version of this Bitcoin-centric legislation was introduced to the Senate and was approved by a committee in April 2022. A similar bill was proposed in the House of Representatives, but according to legislative records, there has been no progress on the bill for over a year.
When the bill was initially introduced, El Salvador's President Nayib Bukele, was highly critical of US lawmakers on Twitter, labeling them as "boomers" and accusing them of meddling in "a sovereign and independent nation." Under Bukele's leadership, the nation has embraced numerous crypto-friendly policies, including plans to generate funds to build a Bitcoin city through BTC-backed bonds.
