There have been several encouraging reports from the House and Senate regarding cryptocurrencies, but one congresswoman seems to anticipate more downside than upsides.
U.S. Representative for California’s 35th District, Congresswoman Norma J. Torres, announced on April 4 that she, alongside Congressman Rick Crawford introduced the Accountability for Cryptocurrencies in El Salvador (ACES) Act to mitigate the risks to the United States of El Salvador.
As she introduced the bill, she labeled the Central American nation’s adoption of Bitcoins as a careless gamble.
“El Salvador’s adoption of Bitcoin is not a thoughtful embrace of innovation, but a careless gamble that is destabilizing the country. “
She added:
“El Salvador is an independent democracy and we respect its right to self-govern, but the United States must have a plan in place to protect our financial systems from the risks of this decision.”
What is the Bill exactly?
The bill requires the State Department to conduct an assessment of the risks to cybersecurity, economic stability, and democratic governance in El Salvadoran as a result of the country’s acceptance of Bitcoins, as well as develop a strategy to mitigate such risks for the U.S. There is a financial system.
“The rise in popularity of cryptocurrencies such as Bitcoin creates questions and a necessary review of regulation and consumer protection which the U.S. federal government should be involved in,” said Representative Crawford.
Many people in the international community are aware of the risks of El Salvadoran’s decision to accept Bitcoins as legal cash.
The International Monetary Fund characterized El Salvador’s decision to use Bitcoins as a threat to financial stability. The lender abstained from lending to the country.
According to Moody’s, El Salvadoran might have lost as much as $22 million during a slump in the Bitcoins market on its own.
The latest legislation was designed to make sure that El Salvador’s actions don’t have a negative impact on American national security.
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