U.S. Senate Proposes Bill On ‘Accountability For Cryptocurrency In El Salvador’

Bitcoin at the Speed of Light(ning)

Welcome back to the Tribe! In this post we dive into the new bill the U.S. senate is proposing called Accountability For Cryptocurrency In El Salvador.

Nothing should be considered investment or financial advice. Enjoy the ride!

Accountability For Cryptocurrency In El Salvador

The US senate which has since expressed concern over El Salvador’s adoption of Bitcoin as a legal tender, yesterday proposed legislation on the ‘accountability for cryptocurrency in El Salvador’. This move, according to the proponents of the legislation, is to mitigate risks the adoption of cryptocurrency by its Central American trading partners poses to the US economy.

The Bill

The bill which was introduced by US Senator Jim Risch and co-sponsored by Senators Bob Mendez and Bill Cassidy sought to require reports on the adoption of a cryptocurrency in El Salvador.

According to the contents of the bill, in general, it requires the Secretary Of State in coordination with other relevant federal departments and agencies to submit a report on the adoption of a cryptocurrency as legal tender by the Government of El Salvador. The report according to the document will come 60 days after the enactment of the act.

Furthermore, the legislation requires that the report focus on;

El Salvador’s legislative process and framework for the adoption of a cryptocurrency as a legal tender, the adoption’s compliance with the requirements of the country’s Financial Action Task Force, and the impact of the adoption on individuals and businesses.

The report will also cover the country’s internet infrastructure to facilitate the adoption, and matters arising related to hacking, theft, and cybercrime.

Following the report, the Secretary of State and the other department and agencies shall submit a plan to mitigate any potential risks to the US financial system to the appropriate committee of the congress within 90 days.

Reactions to the Bill

The Senator commented yesterday on the bill which was introduced on February 16, which means that the full Senate will need to vote on this bill.

Per a Press release by the united states Senate Committee On Foreign Relations Senator Risch commented on the bill.

He said:

“As El Salvador has adopted Bitcoin as legal tender, it’s important we understand and mitigate potential risks to the U.S. financial system. Our legislation passed by committee today requires the State Department to coordinate with Treasury and other federal agencies to examine and mitigate these risks, including any potential empowerment of malign actors like China and organized criminal organizations. I’m grateful to Senators Menendez and Cassidy for their partnership on this legislation.”

In a tweet yesterday, Nayib Bukele the president of El Salvador expressed shock over the bill by the US senators on El Salvador’s adoption of Bitcoin as a legal tender. In the tweet he shared some screenshots of the bill’s content Bukele and said:

“Never in my wildest dreams would I have thought that the US Government would be afraid of what we are doing here.”

Never in my wildest dreams would I have thought that the US Government would be afraid of what we are doing here. pic.twitter.com/QgJPa70mn0

— Nayib Bukele (@nayibbukele) March 23, 2022

The bill is a move to probe the integrity of El Salvador’s process of adoption of bitcoin as a legal tender. And also to protect the US from malign actors like China and organized crime rings. A move that Bukele finds shocking.

Nigerian Crypto Bank

Nigerian-based fintech startup Canza recently bagged a bumper funding pack from investors. The fresh cash injection provides Canza with financial support to build out its crypto-focused cross-border payment infrastructure. Reports put the hefty raise at around $3.2 million.