Despite multiple positive reports from the House and Senate on cryptocurrency, one lawmaker seemed to perceive more disadvantages than advantages in the adoption of Bitcoin in particular.
Congresswoman Norma J. Torres, the United States Representative for California’s 35th District, announced on April 5 that she and Congressman Rick Crawford had introduced the Accountability for Cryptocurrency in El Salvador (ACES) Act to mitigate the risks that El Salvador’s adoption of Bitcoin as legal tender poses to the United States.
As she introduced the law, Torres called the Central American country’s embrace of Bitcoin “a reckless gamble” in a tweet.
“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.”
The bill mandates that the State Department analyze the risks to El Salvador’s cybersecurity, economic stability. Then, and democratic governance as a result of the country’s acceptance of Bitcoin as legal cash. Of course, as well as establish a strategy to mitigate such risks for the US financial system.
The international community has recognized that El Salvador’s decision to embrace Bitcoin as legal tender has significant concerns.
El Salvador’s plan to accept Bitcoin earlier this year was explicitly described by the International Monetary Fund (IMF) as a danger to financial stability and consumer safety. As a result, the International Monetary Fund (IMF) decided not to lend to the government.
Meanwhile, Moody’s Sovereign Risk Group projected that El Salvador could have lost up to $22 million due to a drop in the Bitcoin market.
As a result, the new Act is intended to ensure that El Salvador’s actions do not jeopardize American national security.
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