Senators Jim Risch (R-Idaho), Bob Menendez (D-NJ), and Bill Cassidy (R-La.) have introduced the “Accountability for Cryptocurrency in El Salvador Act,” or “ACES Act,” according to the Senate Committee on Foreign Relations.
According to the press release, the proposed measure calls for a State Department report on El Salvador’s use of bitcoin as legal money, as well as “a strategy to minimize any vulnerabilities in the US financial system.” The State Department would study El Salvador’s use of bitcoin as legal money, as well as the implications for cybersecurity, economic stability, and democratic government.
El Salvador legalized Bitcoin alongside the US dollar in September of last year. Since then, the country has gained 1,801 BTC.
The US isn’t the only country worried about El Salvador’s Bitcoin law. In November of last year, Andrew Bailey, Governor of the Bank of England (BOE), voiced concern about bitcoin being used as legal tender in El Salvador.
Furthermore, the International Monetary Fund (IMF) has repeatedly urged the Philippines to stop using bitcoin as legal tender. According to the IMF, the costs of making Bitcoin legal tender exceed the potential benefits.
On the other hand, El Salvador finds no need to relax its Bitcoin laws. President Bukele anticipates that two more countries will join.
Several US lawmakers have introduced legislation to mitigate the risks of El Salvador’s acceptance of bitcoin as legal tender. “El Salvador’s embrace of bitcoin as legal currency opens the door to money laundering cartels and harms US interests,” a US lawmaker said.