Thousands of people have taken to the streets to protest the launch of Bitcoin in El Salvador. The protests come just a week after the launch of the official digital payment system for Bitcoin called Chivo. We took a closer look at the events.
Why are El Salvador residents against Bitcoin?
During the demonstration, participants accused the president of using authoritarian methods and abusing his power. At the same time, they expressed their displeasure with the introduction of Bitcoin.
Even before the country officially introduced Bitcoin as a legal currency on September 7, a protest organized by the opposition took place. Another demo it by pensioners and workers.
In a letter, the group Popular Resistance and Rebellion Block expressed concerns:
- The president passed the cryptocurrency law without popular approval.
- The digital wallet is too volatile and will only benefit prominent businessmen in the country who are known to launder black money.
The civil protest by pensioners has highlighted their own problems with cryptocurrency:
- Concerns that the government is paying their pensions in cryptocurrency instead of dollars.
- Bitcoin is too volatile, so they have no control over it.
- Lack of knowledge and technology in dealing with cryptocurrencies.
- Too little information about the pros and cons of Bitcoin.
How successful has the introduction of bitcoin been?
Since the cryptoWhen the cryptocurrency was declared legal tender, there were several problems. First, the government wanted to encourage citizens to switch to the cryptocurrency with a gift of 30 US dollars. Due to this incentive, the digital wallet Chivo was overloaded.
In addition, there were technical issues that prevented the app from working properly on some phones. For this reason, the president also admitted that the three-month launch schedule was very ambitious.
However, the biggest problem that everyone observed was the BTC exchange rate. On the day of the Bitcoin launch, the price of the cryptocurrency unexpectedly dropped below $43,000.
Although this new move was marred by protests, a warning from the IMF, and technical glitches, many analysts and investors are curious to see if it will pay off in the long run.