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Two members of Congress say the United States is in danger of introducing bitcoin as a legal tender in El Salvador. It is for this reason that these Congressmen, Norma J. Torres and Rick Crawford introduced the Cryptocurrency Accountability (ACES) Act in El Salvador yesterday. What does this mean?
Not thinking well
In short, Torres and Crawford want to explore potential risks using this “action” and develop a plan to protect the United States based on it. They rely mainly on the principle that El Salvador’s bitcoin standards are not well thought out.
“El Salvador is an independent democracy and we respect its right to self-government, but the United States must have a plan to protect our financial institutions from the dangers of this decision, which seems like a careless gamble,” Torres said.
On the other hand, it has brought a lot to El Salvador. Previously, 70% of Salvadorans did not have a bank account. Since the introduction of Bitcoin, these residents have been able to pay with Bitcoin wallets. There are other benefits, but the risks are significant for the United States.
‘Emergency results’
The law aims to ensure that the State Department analyzes the risks to cybersecurity. In addition, they want to study economic stability and democratic governance in El Salvador.
Based on this analysis, they want to develop a plan to protect the United States from risks because, according to Crawford, the popularity of cryptocurrencies creates the “necessary regulatory and consumer protection shift.”
“El Salvador’s hasty decision to accept Bitcoin as a legal tender raises concerns about the stability of the economic relationship between the United States and El Salvador.
The IMF wants El Salvador to be stopped
Through this legislation, they have relied on the IMF’s earlier findings and based on Moody’s Sovereign Risk Committee estimates that El Salvador lost $ 22 million in a single collapse.
The IMF tried to make bitcoin a legal tender in El Salvador. This poses a great risk to financial stability and consumer protection. This is the reason why El Salvador was not funded.
President Naib Bukele did not listen. As he often shows on Twitter, he is not a fan of the IMF.
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