A group of US senators have introduced a bill that would require reports of Bitcoin being adopted as legal tender in El Salvador.
the “Cryptocurrency Accountability in El Salvador LawSubmitted by Sens. James Risch, Sens. Bob Menendez, and Sens. Bill Cassidy, requests the Secretary of State, in coordination with other relevant federal departments and agencies, to submit a report on the adoption of Bitcoin as legal tender in El Salvador. The report should include an assessment of El Salvador’s regulatory framework and impact Bitcoin’s potential dependence on macroeconomic stability, democratic governance, and the flow of remittances from the United States to El Salvador.
The bill also calls for a plan to mitigate any potential risks to the US financial system due to the adoption of a cryptocurrency as legal tender in El Salvador and any other country that uses the US dollar as legal tender. According to the bill, the plan must be submitted to the appropriate congressional committees no later than 90 days after the report required by subsection (a).
The Bitcoin Law, passed by the Salvadoran government in June 2021, gives Bitcoin legal status in the country. Some experts criticized the move, saying it could lead to instability in the country’s economy. However, others saw the move as a potential catalyst for wider adoption of bitcoin in the region. Despite the controversy surrounding the move, El Salvador has remained committed to its bitcoin adoption plans.