US Senators are reportedly reintroducing a bill that would allow them to track and monitor the developments related to El Salvador’s adoption of Bitcoin (BTC).
According to a new report by the Washington Examiner, Senators Bob Menendez, a Democrat from New Jersey, and Jim Risch, a Republican from Idaho, have announced the Accountability for Cryptocurrency in El Salvador Act.
The bill would allow the State Department to create reports about how the Central American nation’s adoption of the crypto king as legal tender impacts El Salvador’s cybersecurity, economic stability and democratic governance.
The lawmakers are also interested in seeing how effectively El Salvador can combat illegal activities, such as money laundering.
As stated by Risch to the Washington Examiner,
“Using cryptocurrency as legal tender could weaken economic and financial stability and empower malign actors. Given US interest on prosperity and transparency in Central America, we must seek greater clarity on how the adoption of Bitcoin as legal tender may impact El Salvador’s financial and economic stability, as well as El Salvador’s capacity to effectively combat money laundering and illicit finances.”
El Salvador made history in the middle of 2021 after Nayib Bukele, the nation’s president, deemed the top crypto asset by market cap as legal tender, making El Salvador the first country to take such a step.
The Salvadoran government also heavily invested in Chivo, its federal digital wallet, as well as BTC ATMs around the country, according to the report.
However, Bitcoin and the crypto markets plunged to as low as $16,300 in 2022 after a series of high-profile collapses, including the multi-billion-dollar downfalls of stablecoin issuer Terra (LUNA) and crypto exchange FTX.
BTC has since recovered and is trading for $26,884 at time of writing.
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