Salvadorans take to the streets to protest Bitcoin law

[ad_1]

Protesters calling themselves the Popular Resistance and Rebellion Bloc have spoken out against the El Salvador government for passing a law making Bitcoin legal.

A Tuesday tweet from local media El Mundo shows El Salvadorians carrying banners saying no to Bitcoin on the streets of San Salvador demanding the repeal of the country’s Bitcoin law. Legislative Assembly members Anabel Belloso and Dina Argueta addressed the protesters after meeting the group for the first time separated by a razor wire barrier.

RT @SusanaPenate: Members of the Popular Resistance and Rebellion Bloc have come to present a proposal to repeal the Bitcoin law. They go out to receive Dina Argueta and Anabel Bellosopic.twitter.com/CXFLDW4tsr

El Mundo Journal (@ElMundoSV) July 20, 2021

In a letter made available at the protest, the Popular Resistance and Rebellion Block group claimed that President Nayib Bukele passed the law making cryptocurrency legal tender in the country without proper consultation with the public. He also cited the volatility of Bitcoin (BTC), comparing investing in cryptocurrency to playing the lottery: betting in the lottery is a voluntary act, while Bitcoin is required by law.

Related: Coercion and Coexistence: How Salvadoran Bitcoin Law Can Change Global Finance

However, the group’s main grievance regarding Bitcoin’s legal framework seemed to center on a perceived disparity in the government’s use of cryptocurrencies compared to the average resident of El Salvador. Protesters said Bitcoin is only used by certain big businessmen, especially those linked to the government, to launder ill-gotten money.

Entrepreneurs who invest their capital in Bitcoin will not pay taxes on their income, the letter says. In addition, to apply Bitcoin, the government will spend millions of dollars in taxes paid by the people.

They added:

“Bitcoin would facilitate public corruption and the operations of drug, arms and human traffickers, extortionists and tax evaders. It would also cause monetary chaos. the middle class.”

Although adopted by the Salvadoran government and promulgated by Bukele in June, the law recognizing Bitcoin as legal tender in the country will not come into force until September 7. law be repealed. In addition, the World Bank has also refused to help El Salvador transition to a Bitcoin-friendly framework, given its environmental and transparency shortcomings.

Related: What’s Really Behind El Salvador’s Bitcoin Law? Expert response

During a scheduled visit by the US State Department earlier this month, Under Secretary of State for Political Affairs Victoria Nuland suggested that El Salvador ensure that Bitcoin is well regulated and transparent, but has nothing said explicitly against the country’s transition to a more digital economy. Some supporters of the law, including Bukele, have suggested that Bitcoin could help facilitate remittances for Salvadoran citizens living abroad and reduce the country’s dependence on the U.S. dollar.

[ad_2]