US lawmakers target perceived risks of crypto adoption in El Salvador with reintroduced bill

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Two US senators from opposite sides of the political aisle have reintroduced 2022 legislation aimed at mitigating the perceived risks posed by El Salvador’s adoption of Bitcoin as legal tender.

Congressional records showed that Idaho Senator James Risch and New Jersey Senator Bob Menendez introduced a bill requiring reporting on the adoption of cryptocurrency as legal tender in El Salvador on May 11. The legislation appeared to be a second attempt at accountability for cryptocurrency in El Salvador. Act, which Risch introduced in February 2022, just months after El Salvador’s bitcoin law came into force.

According to a May 12 report from the Washington Examiner, Risch introduced the bill as part of efforts to curb the use of cryptocurrency as legal tender, saying it could weaken economic and financial stability and empower malicious actors. Bitcoin (BTC) has been accepted as legal tender in El Salvador alongside the national currency of the colon and the US dollar since September 2021.

If passed, the bill could require U.S. federal agencies to report on El Salvador’s cybersecurity and financial stability capabilities, and how these may have led to the passage of the country’s Bitcoin law. The International Monetary Fund also warned the Central American nation in February to take the risk of BTC as legal tender on the country’s financial integrity and stability.

The previous version of Bitcoin-focused legislation introduced in the Senate was passed in committee in April 2022. House of Representatives lawmakers also introduced a companion bill, but according to congressional records, the legislation did not go through. not changed for over a year.

Never in my wildest dreams did I think the US government would be scared of what we’re doing here. pic.twitter.com/QgJPa70mn0

Nayib Bukele (@nayibbukele) March 23, 2022

Related: El Salvador’s Bitcoin Strategy Moved With The Bear Market In 2022

Salvadoran President Nayib Bukele directly attacked US lawmakers as baby boomers on Twitter the last time the bill was introduced, saying they were trying to interfere with a sovereign, independent nation. Under Bukele, the country adopted many pro-crypto policies, including fundraising plans to build a Bitcoin city using BTC-backed bonds.

Magazine: What Bitcoin Use in El Salvador Really Looks Like

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