US Congress Introduce Bill To Reduce Risk From El Salvadors Bitcoin Law

US Congress has introduced companion bill to mitigate risk from El Salvadors bitcoin law

iexclusivenews reports that 2 members of the House of Representatives have introduced legislation. Aimed at mitigating the risks to the United States financial system due to El Salvador adopting Bitcoin (BTC) as legal currency.

This online news outlet understands that California Representative Norma Torres and Arkansas Representative Rick Crawford announced legislation on Monday.

That would direct the State Department to develop a plan to reduce potential financial system vulnerabilities.

Based on a risk assessment of El Salvador’s “cybersecurity, economic stability, and democratic governance” following the country’s legalization of Bitcoin (BTC) in September 2021.

iexclusivenews Nigeria reports that the El Salvador Accountability for Cryptocurrency Act is a companion bill to bipartisan legislation submitted in February in the Senate.

The Senate bill called for the Secretary of State, as well as the heads of federal departments and agencies.

To submit a plan to US Congress within 60 days 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 other countries that accept the dollar.

Such as Ecuador, Micronesia, Palau, East Timor, Zimbabwe, and the Marshall Islands.

According to studies from the International Monetary Fund.

What You Need To Know

Using Bitcoin as legal cash poses “significant dangers” to financial stability, financial integrity, and consumer protection.

“El Salvador is an independent democracy and we respect its right to self-govern. But the United States must have a plan in place to protect our financial systems from the risks of this decision. Which appears to be a careless gamble rather than a thoughtful embrace of innovation,” said Torres.

Today, I introduced the Accountability for Cryptocurrency in El Salvador Act with @RepRickCrawford. El Salvador’s adoption of #Bitcoin is not a thoughtful embrace of innovation, but a careless gamble that is destabilizing the country. https://t.co/Ag9K8fyHMb pic.twitter.com/4N8DN7895w

— Rep. Norma Torres (@NormaJTorres) April 5, 2022

El Salvador’s adoption of BTC as legal cash created “serious worries about the economic stability and financial integrity of a vulnerable U.S. trading partner in Central America,” according to Idaho Senator James Risch, the bill’s author.

One of the bill’s co-sponsors, Louisiana Senator Bill Cassidy, stated that the country’s Bitcoin Law might “[open] the door for money laundering cartels” and jeopardize the dollar’s position as the world’s reserve currency.

The bill passed the Foreign Relations Committee in March and might now be considered for a full Senate vote.

President Nayib Bukele of El Salvador reacted to the bill’s introduction in February by encouraging the US to “keep out” of the country’s domestic affairs.

And to the bill’s passage the following month by declaring that “the US Government DOES NOT stand for freedom.”

Never in my wildest dreams would I have thought that the US Government would be afraid of what we are doing here. pic.twitter.com/QgJPa70mn0

— Nayib Bukele (@nayibbukele) March 23, 2022

Bukele has used his Twitter account to announce many BTC purchases after El Salvador’s Bitcoin Law went into force.

Accumulating 1,801 BTC as of January – valued nearly $83 million at the time of publication.

Furthermore, iexclusivenews Nigeria reports that on March 23, the Salvadoran government announced that it will postpone the issuance of Bitcoin-backed bonds to fund its Bitcoin City initiative.