on the crypto
After gaining the approval of a supermajority in parliament, El Salvador enacted its bitcoin law, essentially becoming the first country in the world to adopt bitcoin as legal tender.
Isn't everyone happy with the country's technological breakthrough?
The bitcoin law was passed just hours after President Nayib Bukele first revealed his intentions to introduce it. The short period of time between Bukele's surprise announcement and the passing of the legislation largely precluded challengers from blocking him.
However, a group of Salvadorans have now come out to protest the Bitcoin law. The group, made up of student associations, left-wing trade unions, among others, and organized by the Popular Resistance and Rebellion Bloc flooded the streets with banners and slogans calling for the law to be annulled.
The problem with the Bitcoin law, according to the protesters
In a letter from the group, protesters said Bukele passed the legislation without consulting extensively with citizens. He also referred to bitcoin's volatility. That being the case, he likened investing in flagship cryptocurrency to playing the lottery, with one protester explaining:
"For those earning a minimum wage, at one moment you could have $ 300 in Bitcoin and the next day that $ 300 can turn into $ 50 depending on his quotation".
In particular, the group's main cause of concern regarding the Bitcoin game is the belief that there will be inequality in the use of the crypto asset by the government and the average citizen. The letter postulates that bitcoin will only serve deep-pocketed businessmen with ties to the government and help them launder dirty money.
Furthermore, they believe that bitcoin “will 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 low-income families and it would affect the middle class ”.
They probably aren't all wrong
The protesters' concerns are not entirely unfounded. A number of politicians and well-known economists have previously dismissed bitcoin as a tool for money launderers and tax evaders, an element that has prevented mainstream acceptance.
Although the bitcoin law has already been passed, it grants 90 days before it becomes applicable, indicating that Salvadorans will be forced to accept bitcoin as legal tender on September 7.
Admittedly, the World Bank has rejected El Salvador's request for help with the adoption of bitcoin due to environmental concerns and the transparency of the cryptocurrency. Protesters fear the government will use millions of dollars in taxes paid by residents to implement the law.
