Two United States Senators, James Risch and Bob Menendez, have brought back legislation with the intention of protecting the public from the consequences of El Salvador’s adoption of cryptocurrency as legal tender. The Accountability for Cryptocurrency in El Salvador Act was reintroduced on May 11 following the nation’s Bitcoin Law back in September 2021 and the US government’s belief that it creates risks to economic and fiscal stability.

While the legislation would require the US federal agencies to submit an evaluation of El Salvador’s capacity in cyberspace, financial stability and the motivations to pass the Bitcoin Law, it has yet to gain momentum in the House of Representatives. Advocates of El Salvador’s controversial decision point out the potential increase in financial inclusion should the cryptocurrency be successfully implemented.

Nayib Bukele, the current President of El Salvador, has been vocal in his support of the Ethereum-backed bonds rolled out to finance the construction of a ‘Bitcoin city’, going as far as calling out the US senators who wanted to interfere in the ‘sovereign and independent nation’ as “boomers”.

The bill was generally seen as an attempt by the US Government to manage the risks associated with the adoption of cryptocurrency. The International Monetary Fund had urged El Salvador to take into consideration the risks that could be posed to the country’s economic and financial stability when using legal tender. Although the US government is attempting to manage the potential dangers, it can be argued that the utilization of blockchain-based tokens could potentially bring financial inclusion to places where it is needed the most.

The reintroduction of the Accountability for Cryptocurrency in El Salvador Act has been met with a lot of suspicion, as people tend to be weary of the US Government’s intentions when it comes to cryptocurrency adoption by El Salvador. It remains to be seen what will come from this bill. But, it seems like a combination of caution and optimism is the best approach at the moment.



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