On September 7 of this year, Bitcoin will officially become legal tender in El Salvador, but according to Reuters and Euronews hundreds of citizens protested against the introduction of the digital currency
Not everyone agrees with the acceptance of Bitcoin
On September 7 of this year, Bitcoin will officially become legal tender in El Salvador. From that date on, every business will have to accept Bitcoin as well as the US dollar. According to the president, this will benefit the people as this law will encourage international remittances using Bitcoin. It would save the country almost $400 million in remittance fees and guarantees instant and more secure financial transactions.
But according to reports in the media, hundreds of protesters gathered to make their voices heard against the introduction of Bitcoin. According to the news agencies this included workers, veterans, and pensioners.
El Salvador’s neighbours are eagerly watching to see if its #Bitcoin law will be successful.
Some El Salvadorans are less than convinced. Here’s why 👇https://t.co/m0cM33xoll
— Euronews Next (@euronewsnext) August 28, 2021
Vitality and instability are the main concerns
Volatility and instability are the main concerns. Stanley Quinteros , a member of the Justice union Supreme Court, says the mandatory adoption of Bitcoin could harm Salvadoran finances because there is no way to control or stabilize prices.
The Salvadoran Association of International Freight Forwarders (ASTIC) also protested the acceptance of Bitcoin. The group stated that if they do not receive a response to their concerns, they will impose an additional 20% fee on those who pay for their freight with Bitcoin to protect themselves from Bitcoin’s volatility.
In addition, a group of activists, students, and unions organized a demonstration. They argued that the law was passed without any consultation and could potentially harm citizens, as they believe there is a risk of corruption and an increase in crime.
How big are the protests?
A user on Twitter posted a picture to show that the protests were not as large as the media reported. It’s hard to tell if his accusations are true, but he accuses the media of not telling the whole story and only showing pictures that zoomed-in instead of filming the crowd from a distance.
— Bitcoin Beach (@Bitcoinbeach) July 25, 2021
President Nayib Bukele will inevitably come under pressure in the coming days. Reports from various agencies aim to show that making Bitcoin a legal tender is the wrong decision. For example, the IMF and the World Bank warned that acceptance would put El Salvador in danger because they believe that accepting the currency is a “step too far” and that the risks of such adoption outweigh the benefits and also JP Morgan warned the country that the liquidity problem of Bitcoin makes it unsuited to be a legal tender