December 6, 2022

Huge Anti Bitcoin Protests Fill The Streets of El Salvador

3 min read

The political scenario in El Salvador is just worsening as the day approaches when the nation will start embracing Bitcoin as legal tender.

On September 7 of this year, the waiting duration for the Bitcoin Law to become mandatory is over. According to the text of this Law, all economic agents need to accept Bitcoin along with the dollar as a way of payment.

Bukele guarantees that the measure looks for to benefit individuals and conserve the country close to $400 million in remittance commissions, guaranteeing instant and more secure financial transactions.

However Salvadorans do not appear to agree.

Individuals of El Salvador Protest Against Bitcoin

In the last couple of days, inconvenience and fear of the imminent application of the Law have exacerbated the state of mind of Salvadorans, and demonstrations have already begun to happen in the streets versus Bitcoin.

As reported by Euronews and Reuters, numerous protesters required to the streets to raise their voices against the Law. Amongst the arranging groups were workers, veterans, and pensioners.

People protesting against Bitcoin in El Salvador. Image: Yonhap News
People objecting against Bitcoin in El Salvador. Image: Yonhap News Volatility and instability is the critical point of concern. Stanley Quinteros, a member of the Supreme Court of Justice’s workers’ union, informed Reuters that the mandatory adoption of bitcoin might damage Salvadoran finances as there is no other way to manage or stabilize prices.

“We understand this coin varies significantly. Its value changes from one second to another and we will have no control over it,”

Protestors discussed that practically no one desires Bitcoin, and they are against the reality that its usage might help with corruption in a country understood for its authoritarian and non-transparent policies.

Other Efforts Against Bitcoin

Just today, the Salvadoran Association of International Cargo Carriers (ASTIC) likewise organized massive protests, demanding the adjustment of Article 7 of the Bitcoin Law that stipulates the obligatory acceptance of Bitcoin.

In a main declaration shared by Telesur, the Association argued:

“No Central American carrier contracted by a financial entity in El Salvador will accept bitcoin as a type of payment, developing divisionism in the sector for paying the foreigner in dollars and the national for being obliged with the cryptocurrency.”

They guaranteed that if they do not receive a reaction to their requests, they will start to charge an extra 20% fee to those who pay freight with Bitcoin to safeguard themselves from the volatility of the cryptocurrency.

Similarly, last month, a group of activists, trainees and unions collected in front of the Congress, requesting the derogation of the Bitcoin Law. They argued that the law was introduced and approved without any consultation and could possibly hurt the interest of the people.

The group presented a written statement arguing that Bitcoin’s decentralization could do more damage than great.

In conclusion, bitcoin would facilitate public corruption and the operations of drug, arms and human traffickers, extortionists and tax evaders. It would likewise cause monetary turmoil, hit people’s salaries, pensions and cost savings, destroy lots of MSMEs, affect peasant households and hit the middle strata.

But it doesn’t seem to be enough for Nayib Bukele, who appears definitely specific that his choice is the very best for his people, and thinks that his foes will suffer a double loss once Bitcoin begins to be utilized as legal tender.