U.S. Senators Jim Risch (R-Idaho) and Bob Menendez (D-N.J.), and Bill Cassidy (R-La.) introduced a bill on February 16th that will require the Secretary of State to gather all Bitcoin related activity from El Salvador’s government and citizens. The description of the bill reads “To require reports on the adoption of a cryptocurrency as legal tender in El Salvador, and for other purposes.”
The “other purposes” include:
- The process that the El Salvadoran Government took to develop and enact the Bitcoin Law.
- An assessment of (i) the regulatory framework of bitcoin in El Salvador, (ii) whether the regulatory framework meets the requirements of the Financial Action Task Force in accordance with virtual-asset transactions, (iii) the impact that Bitcoin has on individuals and businesses who use it, and (iv) the overall effects of the country’s Bitcoin adoption.
- Knowing the entire internet infrastructure of El Salvador and an assessment of (i) the degree to which Bitcoin and other cryptocurrencies are used in the country, (ii) all related matters to “chain of custody” and the potential for cyber-theft involving cryptocurrencies, and (iii) full access to the country’s affordable internet and digital infrastructure among the unbanked population.
All reports must be submitted, within 60 days after the bill is passed, to the “relevant Federal departments and agencies”. The bill claims that these procedures are necessary to develop “a plan to mitigate any potential risk to the United States financial system posed by the adoption of a cryptocurrency as legal tender in El Salvador; and any other country that uses the United States dollar as legal tender.”
El Salvador’s President Nayib Bukele responded to the U.S. Senators in a tweet calling them “boomers” and to “Stay out of our internal affairs”.