Last updated on September 3rd, 2021 at 09:11 am
Thank you for reading this post, don't forget to subscribe!
In the last few days, resentment and panic of the coming application of the Law of Bitcoin as legal tender have aggravated the situation of Salvadorans, and demonstrations have already begun to take place in the streets against Bitcoin.
The political situation in El Salvador is only getting worse as the day approaches when the country will start adopting Bitcoin as legal tender.
By September 7th in the year 2021, the Bitcoin Law will become mandatory. According to the context of this Law, all financial agents must accept Bitcoin along with the dollar as a means of payment. As publicized by various new outlets, hundreds of protesters took to the streets to share theirs thoughts against the Law. Among the organizing communities were workers, veterans, and pensioners.
A member of the Supreme Court of justice’s worker’s union shared that the Volatility and Instability of Bitcoin is a crucial point of concern for the citizens. He also argued that mandatory adoption of bitcoin might damage the financial system of El Salvador as there is no way to monitor or stabilise Bitcoin price.
More Efforts Against Bitcoin
Early this week, the Salvadoran Association of International Cargo Carriers (ASTIC) similarly ordered huge protests, demanding the modification of Article 7 of the Bitcoin Law that stipulates the mandatory acceptance of Bitcoin.
In a news report by Telesur, the Association argued that no Central American carrier contracted by an economic element in El Salvador will accept bitcoin as a form of payment, creating division in the sector for paying the foreigner in dollars and the nation for being obliged with the cryptocurrency.
They swore that if they do not receive a response to their requests, they will begin to charge an additional 20% fee to those who pay freight with Bitcoin to protect themselves from the volatility of the cryptocurrency.
Similarly, last month, a group of activists, students, and unions gathered in front of Congress, asking for the derogation of the Bitcoin Law. They argued that the law was introduced and approved without any consultation and could potentially harm the interest of the people. The group introduced a written statement arguing that Bitcoin’s decentralization 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, hit people’s salaries, pensions and savings, ruin many MSMEs, affect peasant families and hit the middle strata.
But it doesn’t appear to be enough for the President, Nayib Bukele, who seems certain that his decision is the best for his people and believes that his adversaries will suffer a double loss once Bitcoin starts to be used as legal tender.