El Salvador’s Bitcoin law is rejected by its citizens

Despite a three-month ban on demonstrations to prevent the spread of COVID, a group of Salvadorans, including left-wing unions, student associations and others, gathered in the legislative assembly on Monday to protest the country’s use of bitcoin as national currency.

The group, organized by the “Block of Resistance and Popular Rebellion”, used banners and slogans to demand the repeal of the so-called Bitcoin law, according to which BTC is recognized as the legal national currency and forced companies to accept it.

But the demonstrators, who value 77% of Salvadorans, think that is a bad idea.

“It is a law that creates legal uncertainty and can be used to defraud users and also facilitate money and asset laundering,” said activist Idalia Zuñiga.

Another protester expressed concern about Bitcoin’s price volatility. “For people on the minimum wage, you can have $ 300 in bitcoin one moment and $ 300 can become $ 50 the next day,” she said before pointing out. The BTC price fell from a high of $ 63,595 in April to halfway through the year today.

The protesters’ concerns are not new. Important regulators have pointed out fraud and money laundering programs involving Bitcoin and other cryptocurrencies as aspects that make digital assets unacceptable worldwide.

Protesters can legitimately complain about the law’s making as it is a reminder of President Nayib Bukele’s control over all branches of the Salvadoran government. Despite the fact that a bill often goes through an arduous research, consultation and adjustment process, the Bitcoin law was passed in less than six hours after its official presentation by Bukele to the National Assembly.

Although the Bitcoin law has been approved, it has a 90 day period to go into effect, which means Salvadorans are required to accept Bitcoin in September.

Most people are not ready. A recent survey found that around 77% of the country’s population oppose Bukele’s bitcoin law, and most remittance recipients and sellers in the country prefer to use dollars versus bitcoin.

The opposition party, which Bukele once considered a member, filed a lawsuit to block implementation of the Bitcoin law.

Source: Decrypt

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