As Bitcoin law kicks off in less than a week, anti-Bitcoin protests erupt in El Salvador

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Hundreds of protesters took to the streets of El Salvador to speak out against President Nayib Bukele’s decision to make Bitcoin legal tender (CRYPTO: BTC).

What happened: On September 7, Bukele will introduce the highly controversial Bitcoin law to the country.

According to the text of this law, all economic agents must accept Bitcoin as well as the dollar as a means of payment.

Bukele says the Bitcoin law will benefit the people and save nearly $ 400 million in transfer fees. In addition, it will guarantee instant and more secure financial transactions.

But the Salvadoran people are not entirely convinced of this.

Hundreds of protesters, including workers, veterans and retirees, marched in San Salvador to voice concerns over the use of cryptocurrency.

They fear that with the law they will be paid in crypto for their pensions and welfare instead of the US dollar.

There are also concerns that people do not understand the technology needed to use cryptocurrency.

Also Read: Majority of El Salvador Citizens Don’t Endorse President’s Plan to Adopt Bitcoin: Report

“We know that this coin fluctuates considerably. Its value changes every second, and we will have no control over it,” Stanley Quinteros, a member of the Supreme Court of Justice workers’ union, told Reuters. .

Protesters fear the introduction of Bitcoin will encourage corruption already seen within its borders.

However, according to the law, this does not mean that everyone must transact in cryptocurrency.

Why this matters: Bukele once asked a state-owned geothermal power company to plan to offer Bitcoin mining facilities 100% renewable.

“The purpose of this law is to regulate bitcoin as unlimited legal tender with liberating power, unlimited in any transaction, and in any capacity that public or private natural or legal persons require to carry out,” indicates the bill. .

The story continues

The country currently uses the US dollar for transactions and has no say in US monetary policy.

Also read: El Salvador to install 1,500 Bitcoin ATMs as BTC officially slated to become legal tender in early September

The US Federal Reserve can adjust the supply of dollars as needed, and El Salvador could face inflation if it continues to trade in dollars.

The Salvadoran Association of International Freight Carriers (ASTIC) has threatened to charge an additional 20% fee to those who pay freight in Bitcoin to protect against the volatile nature of cryptocurrency.

Read more: El Salvador’s adoption of Bitcoin is “a bad shortcut”: International Monetary Fund

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