US senators are reportedly reintroducing a bill that will allow them to track and monitor developments related to El Salvador’s adoption of Bitcoin (BTC).
Senators Bob Menendez, a New Jersey Democrat, and Jim Risch, an Idaho Republican, have announced the Accountability for Cryptocurrency in El Salvador Act, according to a new report from the Washington Examiner.
The bill would allow the State Department to prepare reports on how the Central American nation’s adoption of the crypto king as legal tender affects El Salvador’s cybersecurity, economic stability and democratic governance.
Lawmakers are also interested in seeing how El Salvador can effectively combat illegal activities, such as money laundering.
As stated by Risch to the Washington Examiner,
“The use of cryptocurrency as legal tender can weaken economic and financial stability and empower adversaries. Given the US interest in prosperity and transparency in Central America, we should seek more clarity on how Bitcoin’s adoption as legal tender could affect El Salvador’s financial and economic stability, as well as El Salvador’s ability to prevent money laundering. money and illicit finances effectively.
El Salvador made history in mid-2021 after Nayib Bukele, the country’s president, declared the main crypto asset legal tender by market capitalization, making El Salvador the first country to take such a step.
The Salvadoran government has also invested heavily in Chivo, its federal digital wallet, and BTC ATMs across the country, according to the report.
However, Bitcoin and the crypto markets fell to $16,300 in 2022 after a series of high-profile collapses, including the multibillion-dollar demise of stablecoin issuer Terra (LUNA) and crypto exchange FTX.
BTC has since recovered and is trading at USD 26,884 at the time of writing.
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Featured image: Shutterstock/jovan vitanovski/Andy Chipus