Key Takeaways:
- Despite multiple good reviews from the House and Senate on cryptocurrency, one lawmaker seemed to perceive more disadvantages than advantages in the adoption of Bitcoin in particular.
- Congresswoman Norma J. Torres, the United States Representative for California’s 35th District, announced on April 5 that she and Congressman Rick Crawford had introduced the Accountability for Cryptocurrency in El Salvador (ACES) Act to mitigate the risks that El Salvador’s adoption of Bitcoin as legal tender poses to the United States.
- As she introduced the law, Torres called the Central American country’s embrace of Bitcoin “a reckless gamble” in a tweet.
El Salvador’s acceptance of bitcoin has been praised by the cryptocurrency community. However, it sounded the alarm both domestically and overseas. These alarm bells are now sounding in the Senate Foreign Relations Committee, which is debating how hazardous the Salvadoran bitcoin trial could become.
Despite numerous encouraging reports from the House and Senate on cryptocurrency, one lawmaker appeared to find more drawbacks than benefits in the adoption of Bitcoin in particular.
Congresswoman Norma J. Torres, the United States Representative for California’s 35th District, announced on April 4 that she and Congressman Rick Crawford had introduced the Accountability for Cryptocurrency in El Salvador (ACES) Act to mitigate the risks that El Salvador’s adoption of Bitcoin as legal tender poses to the United States. Norma Judith Torres is a politician from the United States. She represents California’s 35th congressional district in the United States House of Representatives. She previously served in the California State Senate, where she represented the 35th district.
What is El Salvador Act or ACES?:
Bitcoin has now become a source of concern for governments around the world. The committee approved the Accountability for Cryptocurrency in El Salvador Act, which directs the State Department to assess the risks associated with El Salvador’s bitcoin policy and develop contingency plans.
Senator Bill Cassidy of Louisiana said that the adoption of bitcoin as the official currency of El Salvador “opens the door for money-laundering cartels and harms US interests.”
Sen. Jim Risch of Idaho said that it might “weaken US sanctions policy, strengthening hostile actors like China and organised criminal organisations.”
Senators, including New Jersey’s Bob Menendez, echoed the Bank of England’s, World Bank’s, and IMF’s warnings about financial instability and hazards.
As she introduced the law, Torres called the Central American country’s embrace of Bitcoin “a reckless gamble” in a tweet.
“El Salvador is an independent democracy, and we recognise its right to self-govern,” he said, “but the US must have a plan in place to protect our financial institutions from the hazards of this decision.”
The bill requires the State Department to conduct an assessment of the threats to El Salvador’s cybersecurity and economic stability. Then, as a result of the country’s recognition of Bitcoin as legal tender, democratic governance has emerged. Of course, a strategy to manage such threats for the US financial system should be established as well.
“The surge in popularity of cryptocurrencies like Bitcoin raises problems and necessitates a review of regulation and consumer protection in which the United States federal government should be involved,” Representative Crawford stated.
The international community has recognised that El Salvador’s decision to embrace Bitcoin as legal tender has significant concerns.
The twitter community was definitely not going to keep a hush on the Congresswoman calling BTC’S legal adoption a “gamble” and owing to that many reverted back to this discourse in a sarcastic way.
The entire issue has been labelled “BITCOIN FOMO2022” by @FoxySets whereas,
Read More: El Salvador’s Bitcoin Adoption opposed by IMF.
@TedSmithXRP believes it is almost sad how the US is acting like a bully.
@MYejo71 feels this an absolute portrayal of “colonizer behaviour.”
Bitcoin is essentially just living in peace, utilising energy in the same way that everything else in the cosmos does. “People fear what they don’t understand and hate what they can’t conquer,” is the only reasoning that explains how and why (if in any case) the US dollar can be so weak that the financial decision of a country with half the population of LA may threaten it.
