Protests against President Bukele’s Bitcoin law break out in El Salvador. The neighboring countries in Central America are watching the situation with excitement.
El Salvador’s President Nayib Bukele has sparked heated discussions with his plan to make Bitcoin legal tender. After several surveys on this subject, he must have known that the support of the new law leaves much to be desired among the population. But the rejection is probably greater than previously assumed. Because last Friday, according to media reports, a large protest march took place in which the El Salvadorians raised their voices against the introduction of Bitcoin as an official means of payment. According to reports, one of the main reasons for the skepticism is the high volatility of the cryptocurrency.
We know that Bitcoin is subject to drastic fluctuations. Its value changes from one second to the next and we have no control over it
Stanley Quinteros, a member of the Supreme Court Workers’ Union, told Reuters.
The question is whether the El Salvador government will even allow itself to be changed by these protests. The supporters of Salvadoran President Nayib Bukele in Congress have already approved legislation that gives Bitcoin the status of an official currency alongside the US dollar. This would mean the Central American country would be a world premiere.
El Salvador wants to lower transaction fees with Bitcoin
Independence from the US dollar is not Bukele’s only argument in support of the law, which will officially come into effect on September 7th. El Salvador wants to reduce the cost of transfers by introducing Bitcoin as a parallel legal tender. Foreign money transfers are an important source of income for millions of residents. Correspondingly, the neighboring countries of El Salvador, whose inhabitants are similar, direct their attention to Bukele’s law.
Everyone observes whether things are going well for El Salvador and whether, for example, the costs of transfers are falling significantly. If so, other countries are likely to take advantage of this
said Dante Mossi, executive president of the Central American Bank for Economic Integration (CABEI), told Reuters. The regional development bank CABEI is providing El Salvador with technical assistance with the introduction of the cryptocurrency. This is a major sign of support after the World Bank declined to provide assistance, citing environmental and transparency issues.
Bukele is trying to alleviate public displeasure by promising every new user of the Chivo wallet a Bitcoin bonus worth 30 US dollars. However, this could not prevent the protest rally.