El Salvador’s new BTC law is making its citizens take to the streets, protest and not get the popular response they want. So what’s the real problem here? Find out in today’s Bitcoin newsletter.
Despite a three-month ban on protests aimed at preventing the spread of COVID, a day ago a group of El Salvadorans, including left-wing unions and student associations, gathered in the legislative assembly to oppose the use of BTC as the national currency protest the country. The group organized by “Popular Resistance and Rebellion” demanded with banners that the so-called BTC law, which would make BTC legal tender and force companies to accept it, must be withdrawn. The protesters, who make up 77% of Salvadorans, believe this new BTC law in El Salvador is a bad idea, as one activist put it:
“It is a legal uncertainty and can be used to defraud users and also to facilitate money and asset laundering.”
Other opponents expressed concern about the volatility of the BTC price, saying:
“For people on the minimum wage, you can have $ 300 in Bitcoin one moment and $ 300 can become $ 50 the next day.”
The concerns are not new as other major regulators have pointed out fraud and money laundering programs that involve BTC and other cryptocurrencies to keep digital assets out of global adoption. Protesters can complain about the way the law went into effect as a reminder of the president’s control over all aspects of government. Despite the fact that the bill had to go through a fairly strenuous consultation, research and adjustment process, the Bitcoin law was passed six hours after it was officially presented to the National Assembly.
Although approved, the BTC law provides for a 90-day period, which means that the people of El Salvadore will be required to accept BTC from September onwards. But most people are not ready yet. . A recent poll found that around 77% of the country’s population oppose Bukele’s BTC laws, and most remittance recipients in the country prefer using dollars over BTC. The opposition party filed a lawsuit to block implementation.
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