Two US Lawmakers Revive A 2022 Crypto Bill Proposal
Two lawmakers from the US Senate have reportedly revived a cryptocurrency bill that was initially proposed in 2022. The proposed legislation addresses potential risks and concerns regarding accepting Bitcoin as an acceptable payment settlement method in El Salvador.
Targeted At El Salvador
On May 11, official records of the Congress revealed that two Senators, James Risch from Idaho and Bob Menendez from New Jersey, put forward a proposal referred to as “the bill mandating reports on the incorporation of digital currencies as legal tender in El Salvador.” The new bill was recently introduced by Risch, which is a follow-up to the Accountability for Cryptocurrency in El Salvador Act that he proposed in February 2022.
This latest legislation comes just a few months after implementing the Bitcoin Law in El Salvador. According to a report by the Washington Examiner on May 12, Risch has put forward this bill to combat the use of cryptocurrency as a legitimate form of currency.
He argues that allowing it for this purpose could harm economic and financial stability and give more power to malicious individuals. El Salvador has recognized Bitcoin as a legal tender since September 2021, along with their national currency, colon, and the US dollar.
Should the bill be approved, it would mandate various federal agencies within the United States to investigate and report on El Salvador’s cybersecurity and financial stability capabilities. This analysis will focus on how these capabilities may have influenced the passage of the Bitcoin Law in the country.
In February, the International Monetary Fund (IMF) reportedly cautioned El Salvador to consider the potential risks of accepting BTC as a legal tender and how it could impact the country’s financial stability and integrity.
El Salvador’s President Hits At US
The Bitcoin-centered legislation proposed in the Senate cleared the committee in April 2022. A companion bill was also introduced in the House of Representatives. However, congressional records reveal no progress has been made on the bill in over a year.
When the bill was introduced last time, El Salvador’s President Nayib Bukele took to Twitter to criticize the US lawmakers, referring to them as “boomers.” He accused them of trying to interfere with the affairs of a sovereign and independent nation.
The Central American nation, under the leadership of President Bukele, has implemented numerous cryptocurrency-friendly policies. For instance, the country has plans to generate funds to build a ‘Bitcoin city’ via BTC-backed bonds.
The controversial decision by El Salvador to adopt cryptocurrency as a legal tender was only possible with the efforts of President Nayib Bukele. He gained worldwide attention by announcing and passing the Bitcoin adoption plan as a law.
Since El Salvador recognized Bitcoin as a legal tender, it has become simpler for Salvadorans residing abroad to send money back to their families in the country via remittances. The government’s official wallet, Chivo Wallet, reportedly onboarded 2.2 million Salvadorans just a month after the announcement.
Despite the positives, the country’s credit ratings with the IMF have reportedly suffered with the passage of the Bitcoin law. Meanwhile, most El Salvadorans have no prior knowledge about crypto and its promise of financial inclusion.
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