US Lawmakers seek risk assessment on El Salvador's Bitcoin adoption

Owotunse Adebayo - June 3, 2023
2 mins read

As El Salvador continues to attract more tourists due to its Bitcoin-friendly policies, US lawmakers are raising concerns about potential risks posed by the nation’s adoption of the cryptocurrency. US lawmakers Jim Risch (R-Idaho) and Bob Menendez (D-N.J.), ranking member and chairman of the Senate Foreign Relations Committee, reintroduced a bipartisan bill requesting a State Department report on the impact of El Salvador’s Bitcoin adoption on bilateral economic relations and law enforcement cooperation.

The Accountability for Cryptocurrency in El Salvador (ACES) Act, initially introduced in February last year by Risch, Menendez, and Bill Cassidy (R-La.), aims to shed light on the consequences of Bitcoin becoming legal tender in El Salvador. The US lawmakers are particularly interested in understanding the risks associated with cybersecurity, economic stability, and democratic governance in the country.

El Salvador gained global attention in 2021 when it became the first country to adopt Bitcoin as a legal tender. President Nayib Bukele, a proponent of the cryptocurrency, has acquired significant amounts of Bitcoin, and businesses within the country are required by law to accept Bitcoin as payment if they possess the necessary technological infrastructure.

While President Bukele’s Bitcoin experiment has received praise from cryptocurrency enthusiasts, international institutions like the International Monetary Fund and the World Bank have expressed concerns. In response to these concerns, El Salvador’s National Bitcoin Office (ONBTC) has appointed Saifedean Ammous, author of “The Bitcoin Standard,” as its newest economic advisor.

More:
https://www.cryptopolitan.com/us-lawmakers-assessment-el-salvador-adoption/