La Bitcoin Law, the provision that introduces the legal tender for the token invented by Satoshi Nakamoto, continues to cause much discussion in El Salvador. The decision sponsored by Nayib BukeleIn fact, it is even opposed by 77% of the citizens of the small Central American country. Who strongly fear the now proverbial volatility of cryptocurrency, moreover demonstrated by the collapse recorded by BTC over the last few months. An aversion which is now beginning to give rise to street protests.
Protests against the Bitcoin Law
Within the territory of El Salvador, a ban on street protests was issued, valid for three months. The reason heralded by the government is to be seen in the need to stem the spread of Covid. According to the opposition, however, it would be nothing more than a ploy to disguise Bukele's authoritarian intentions.
A prohibition which, however, was expressly bypassed by a large group of demonstrators, composed among others of left militants and representatives of student organizations. Who presented themselves in front of the premises that host the Legislative Assembly with the specific intent of protesting against the Bitcoin Law.
Organizing the protest was the Block of Resistance and Popular Rebellion, strong of 77% of Salvadoran citizens who proclaim themselves against the law which requires companies to accept Bitcoin. A very strong aversion therefore and such that it could prove dangerous for the popularity of the ruling party.
The statements of Idalia Zuniga on the measure
The activist explained the reasons for the protest Idalia Zuniga. According to which the law would be a source of legal insecurity and could be the ideal tool for fraud at the expense of users. Not to mention the possibility of his own use for money laundering from illegal operations.
Other protesters instead preferred to point the finger at the excessive volatility of BTC, recalling the recent vicissitudes that have brought down its quotation from almost 64 thousand dollars in April to 32 thousand today. Data such as to strike fear, especially in light of the possibility of using a US dollar which is not subjected to changes of this kind. These are the rest of the same arguments that have so far prompted many governments to make explicit their opposition to digital assets.
A very questionable legislative process
The Bitcoin Law, however, is proceeding in the Salvadoran Parliament as one steamroller. Bukele's strict control over the Legislative Assembly, in fact, allowed the measure to be approved in a few hours and with minimal discussion. If not even non-existent, despite the warnings of the IMF and the World Bank Considered that after the approval it takes 90 days before a measure becomes fully operational, the legal tender of Bitcoin should be a reality already in September. Consequently, forcing the citizens of the country to expose themselves to the risks deriving from the fluctuations of the token. Consequently, a tweet from Elon Musk or the contrary decision of a government against BTC will be enough to decide the fate of a company or family budget.
If Satoshi Nakamoto hoped to subvert the traditional finance sector with the launch of Bitcoin, Bukele's doesn't seem like the best way to fulfill his initial hopes.