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Senators are investigating President Bukele’s Bitcoin bill to see if it has a negative impact on the US dollar.
The bill was introduced on February 18th, but it only gained attention today after El Salvador’s President, Nayib Bukele, stated his displeasure with it. “I could never see the US government being afraid in my wildest dreams.”
Is the US investigating the bill or trying to stop Russia?
The acceptance of Bitcoin as legal cash in El Salvador appears to be picking the interest – or worry – of the US Congress. Senators James Risch, Bob Menendez, and Bill Cassidy have introduced the “Accountability for Cryptocurrency in El Salvador Act” (or ‘ACES’ act) to track the impact of the country’s new cryptocurrency law on the country and the US.
It would also compel federal departments to submit a plan to Congress within 90 days for minimizing the effects of crypto legal tender adoption on the United States, as well as any other country that currently uses the dollar for such reasons.
The senators, like so many other authorities today, have asked for an investigation into how El Salvador’s crypto adoption could aid countries like Russia in evading US sanctions. Unlike Elizabeth Warren’s bill on the topic, however, this bill has Republican support.
ALSO READ – Why do the Bank of England and other regulators assess crypto risks?
Danger to the dollar’s worldwide dominance
Some politicians, including Hillary Clinton and Donald Trump, have warned for years that Bitcoin poses a danger to the dollar’s worldwide dominance. However, it has only recently been fashionable to discuss the dollar’s weakness in light of the crisis between Russia and Ukraine and its economic consequences.
It’s possible that the fact that many additional countries, in addition to El Salvador, are considering making Bitcoin legal tender is no accident. It would also explain President Biden’s “urgency” in exploring CBDC development in his recent executive order, which had as one declared purpose the preservation of the dollar’s standing as a global reserve currency.
For months, El Salvador has been punished by organizations such as the International Monetary Fund and the World Bank over Bitcoin. President Bukele, on the other hand, has continually defied his critics and maintained his upbeat outlook.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
