WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA), Jim Risch (R-ID), and Bob Menendez (D-NJ) today introduced the Accountability for Cryptocurrency in El Salvador (ACES) Act to require the State Department to write a report on El Salvador’s recognition of Bitcoin, a cryptocurrency, as an accepted currency within the country. The State Department report would study the dangers of this law regarding cybersecurity, economic stability, and democratic governance in El Salvador, as well as the potential risks to the U.S. economy.
“El Salvador recognizing Bitcoin as official currency opens the door for money laundering cartels and undermines U.S. interests,” said Dr. Cassidy. “If the United States wishes to combat money laundering and preserve the role of the dollar as a reserve currency of the world, we must tackle this issue head on.”
“El Salvador’s adoption of Bitcoin as legal tender raises significant concerns about the economic stability and financial integrity of a vulnerable U.S. trading partner in Central America,” said Sen. Risch. “This new policy has the potential to weaken U.S. sanctions policy, empowering malign actors like China and organized criminal organizations. Our bipartisan legislation seeks greater clarity on El Salvador’s policy and requires the administration to mitigate potential risk to the U.S. financial system.”
Background
In June of 2021, El Salvador passed a law that recognizes Bitcoin as a legal tender and allows Salvadorans to use it to purchase goods and services, pay taxes, and satisfy debts.
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