The U.S. Senate is concerned about the fact that Bitcoin was adopted as a legal tender in El Salvador in 2021. The reason for such concerns is the fact that it opens space for money laundering and terrorism funding, and might affect the economic stability of the region.
Therefore, senators Bill Cassidy and James Risch suggested an Accountability for Cryptocurrency in El Salvador Act (ACES), that would mitigate the risks that emanate from El Salvador’s adoption of cryptocurrency. Cassidy and Risch stated that the new legal tender negatively affects the financial integrity of this Central American country and important trading partner of the U.S.
The Act assesses the financial implications of the situation in El Salvador, from cyber security risks to the impact it could have on individuals and businesses. According to senators, the Act will be followed by an action plan.
The reaction from El Salvador was immediate and sharp. President Nayib Bukele tweeted “You have 0 jurisdictions on a sovereign and independent nation. We are not your colony, your back yard, or your front yard.”