US Senators Jim Risch and Bob Menendez have reintroduced the “El Salvador Cryptocurrency Accountability Act,” known as the “ACES Act,” for discussion in the Senate. The bill aims to examine the level of adoption of bitcoin as legal tender in El Salvador and how this might affect the country’s financial stability.
The El Salvador Cryptocurrency Accountability Act (ACES) is reintroduced in the US Senate
US Senators Jim Risch and Bob Menendez have reintroduced the “El Salvador Cryptocurrency Accountability Act”, also known as the “ACES Act”, which will be discussed in the US Senate. The bill, which was already presented to Congress on March 23, 2022, aims to examine the process applied to make bitcoin legal tender in El Salvador, as well as its effects on the country’s economy.
During the reintroduction of the ACES Act, US Senator Jim Risch reinforced the perceived need to assess the possible effects of using crypto as legal tender. He stated:
We must seek greater clarity on how the adoption of bitcoin as legal tender may impact El Salvador’s financial and economic stability, as well as El Salvador’s ability to effectively combat money laundering. illicit money and finance.
Elements of the Law
If enacted, the law would require the Secretary of State and Secretary of the Treasury to produce a report on the adoption of bitcoin and legal tender in El Salvador. This would include an assessment of the legislation that authorizes it, the impact it has on the personal economy of Salvadorans, as well as the gaps that this implementation could create with regard to compliance with the directives issued by the Financial Action Task Force (FATF) on 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, it must also examine how the adoption of bitcoin could influence the flow of remittances between El Salvador and the United States, and how it could undermine the use of the dollar in the country.
Salvadoran President Nayib Bukele had previously expressed disbelief over the text of the ACES law, stating:
Never in my wildest dreams did I think the US government would be afraid of what we are doing here.
What do you think of the reintroduction of the “Accountability for Cryptocurrency in El Salvador (ACES)” law in the US Congress? Tell us in the comments section below.
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