The political situation in El Salvador is deteriorating as the day approaches when the country will adopt Bitcoin
as legal tender. Sponsored
will go into effect in El Salvador. According to the wording of this law, all economic entities will have to accept Bitcoin, just like the dollar.
The country’s president Bukele promises that the measure will benefit citizens and save the country nearly $400 million in remittance fees. Moreover, it will guarantee instant and safer transactions
. However, it seems that Salvadorans do not agree with this idea. Sponsored Sponsored Salvadoran
citizens protest against Bitcoin
Over the past few days, irritation and fear of the imminent application of the law have worsened the mood of Salvadorans. Demonstrations against Bitcoin have already begun to take place in the streets.
, hundreds of protesters took to the streets to express their opposition to the law. Among the groups organizing were workers, veterans and retirees. People protesting against Bitcoin in El Salvador. Source: Yonhap News
A major concern is the volatility and instability of the original cryptocurrency. Stanley Quinteros, a member of the Supreme Court employees union, told Reuters that the mandatory adoption of Bitcoin could hurt El Salvador’s finances because there is no way to control or stabilize its prices.
We know that this coin fluctuates drastically. Its value fluctuates from second to second and we will have no control over it.
The protesters explained that almost no one in the country wants to adopt Bitcoin. Moreover, they argue that its use could facilitate corruption in a country known for its authoritarian and opaque politics.
Other efforts against Bitcoin
Just this week, the Salvadoran Association of International Freight Carriers (ASTIC) also staged a massive protest, demanding a change to Article 7 of the law that provides for the mandatory acceptance of Bitcoin. In an official statement u
accessed by Telesur, the Association argued:
No Central American carrier contracted by a commercial entity in El Salvador will accept Bitcoin as a form of payment, creating divisions in the sector for paying a foreigner in dollars and obliging the nation to accept cryptocurrencies.
The association has stated that if they do not get a response to their requests, they will start charging an additional 20 percent fee to those who pay freight using Bitcoin. This is all to protect themselves from the volatility of the cryptocurrency.
Similarly, last month, a group of activists, students, and labor unions rallied in front of Congress, asking them to repeal the law. They argued that it was introduced and approved without any consultation and could potentially harm people’s interests.
The group submitted a written statement arguing that decentralizing bitcoin could do more harm than good.
In summary, bitcoin would facilitate public corruption and the activities of drug, arms and human traffickers, extortionists and tax evaders. It would also cause monetary chaos, hit people’s salaries, pensions and savings, ruin many small and medium-sized businesses, affect peasant families and hit the middle strata.
However, these are not enough arguments for Nayiba Bukele who seems absolutely sure that his decision is the best for his people. According to him, “opponents of the bill will suffer a double loss”:
La oposición torpe siempre juega ajedrez de un paso.
Han apostado todo a meterle miedo a la población sobre la #LeyBitcoin
y puede que logren algo, pero solo hasta el 7 de septiembre.
Una vez en vigencia, la gente verá los beneficios, quedarán como mentirosos y perderán doble
– Nayib Bukele (@nayibbukele) August 23, 2021
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