US Senators Jim Risch and Bob Menendez have reintroduced the El Salvador Crypto Accountability Act, otherwise known as the ACES Act, for debate in the Senate. The legislation seeks to examine the level of adoption of bitcoin as legal tender in El Salvador and how this may affect the country’s financial stability.
The Accountability for Cryptocurrency in El Salvador (ACES) Act has been reintroduced in the US Senate
US Senators Jim Risch and Bob Menendez reintroduced The El Salvador Digital Currency Accountability Act, also known as the ACES Act, will be debated in the US Senate. a piece of legislationpreviously submitted to Congress on March 23, 2022, seeks to examine the process in place to legally tender bitcoin in El Salvador, as well as its impact on the country’s economy.
In reintroducing the ACES Act, US Senator Jim Risch reinforced the perceived need to assess the potential implications of using cryptocurrencies as legal tender. He said:
We should seek more clarity on how the adoption of Bitcoin as legal currency will affect El Salvador’s financial and economic stability, as well as El Salvador’s ability to effectively combat money laundering and illicit financing.
elements of the law
If the law is enacted, it will force the Secretary of State and Secretary of the Treasury to issue a report on bitcoin adoption and legal tender in El Salvador. This will include assessing the legislation that allowed it, its impact on the personal economy of Salvadorans, as well as the loopholes that such implementation could create in terms of compliance with the Financial Action Task Force’s (FATF) guidelines on money. Money laundering and terrorist financing activities.
The report should also include how the introduction of bitcoin could affect El Salvador’s relations with multilateral financial organizations, such as the World Bank and the International Monetary Fund, as well as its international financial stability.
Finally, you should also examine how the adoption of bitcoin could affect the flow of remittances between El Salvador and the United States, and how it could undermine the use of the dollar in the country.
El Salvadoran President Neb Bukel had expressed his disapproval of the text of the ACES Act before, saying:
Never in my wildest dreams would I have thought that the government of the United States would be afraid of what we do here.
What do you think about the reintroduction of the El Salvador Crypto Accountability Act (ACES) into the US Congress? Tell us in the comments section below.
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