The political situation in El Salvador is only getting worse as the day approaches when the country starts adopting Bitcoin as legal tender.
On September 7 of this year, the waiting period for the mandatory Bitcoin Law ended. According to the text of this Law, all economic agents must accept Bitcoin along with the dollar as a means of payment.
Bukele promises that the measure seeks to benefit people and saves the country nearly $ 400 million in remittance fees, ensuring instant and safer financial transactions.
But the Salvadorans don’t seem to agree.
The people of El Salvador protest against Bitcoin
In recent days, the annoyance and fear of the imminent application of the law have exacerbated the mood of Salvadorans, and street demonstrations against Bitcoin have already begun.
As reported by Euronews and Reuters, hundreds of protesters took to the streets to raise their voices against the law. Organizational groups included workers, veterans, and retirees.
Volatility and instability are the crucial point of concern. Stanley Quinteros, a member of the Supreme Court of Justice workers union, told Reuters that the mandatory adoption of bitcoin could harm Salvadoran finances as there is no way to control or stabilize prices.
“We know this currency fluctuates dramatically. Its value changes from one second to the next and we will have no control over it “,
Protesters explained that hardly anyone wants Bitcoin, and they are against the fact that its use could facilitate corruption in a country known for its authoritarian and non-transparent policies.
More Efforts Against Bitcoin
Just this week, the Salvadoran Association of International Freight Carriers (ASTIC) also organized massive protests, calling for the modification of Article 7 of the Bitcoin law which provides for the mandatory acceptance of Bitcoin.
In an official statement shared by Telesur, the Association argued:
“No Central American carrier hired by an economic entity in El Salvador will accept bitcoin as a form of payment, creating divisionism in the sector to pay the foreigner in dollars and the national to be obligated with cryptocurrency.”
They have ensured that if they don’t get a response to their inquiries, they will start charging an additional 20% fee to those who pay for transportation with Bitcoin to protect themselves from cryptocurrency volatility.
Likewise, last month, a group of activists, students and unions gathered before Congress, calling for an exception to the Bitcoin law. They argued that the law was introduced and passed without any consultation and could potentially harm people’s interest.
The group filed a written statement arguing that decentralizing Bitcoin could do more harm than good.
In conclusion, bitcoin would facilitate public corruption and the operations of drug, arms and human traffickers, extortionists and tax evaders. It would also cause monetary chaos, it would affect people’s salaries, pensions and savings, it would ruin many MSMEs, it would affect peasant families and it would affect the middle strata.
But that doesn’t seem to be enough for Nayib Bukele, who seems absolutely certain that his decision is the best for his people, and believes that his opponents will suffer a double loss once Bitcoin begins to be used as legal tender.
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