Bitcoin (BTC) is set to become a legal official currency in El Salvador on September 7th, 2021. Although the announcement in early June had caused much euphoria, many also met the plan with criticism. After the decision was not so well received in their own country, the inhabitants of El Salvador are now demonstrating.
Nayib Bukele, President of El Salvador, wanted to do the citizens of his own country a favor by introducing Bitcoin as an official currency. In his opinion, this would combat poverty in the state. In the beginning, most of the criticism came only from the opposition and from institutions such as the World Bank and the International Monetary Fund.
But now dissenting voices from within the country are also becoming more apparent. However, it is difficult to judge whether the demonstrations are only about the introduction of bitcoin as a currency or rather about President Nayib Bukele. Bukele is heavily criticized in his home country for his authoritarian style of leadership.
If you want to read more about the protests in El Salvador and to find the latest business news in the world, download the Born2Invest mobile app.
People feel ignored by the officials in El Salvador
The demonstrations emanate from the leftist organization “Bloque de Resistencia y Rebeldia Popular.” According to them, the Bitcoin law was passed without detailed studies. In addition, they say, the people were not consulted.
They fear a significant disadvantage for the lower and middle classes as a result of the Bitcoin introduction in the country. So far, for example, about 70 percent of the inhabitants do not have their own bank account anyway. However, the banking part will be directly bypassed with the introduction of Bitcoin as a means of payment.
Bitcoin will not be forced on residents
In doing so, Bukele had stated quite clearly that bitcoin does not have to be forced upon all residents. Bukele still made the following comments in this regard at the end of June:
“The use of Bitcoin will be optional. No one will receive Bitcoin if they don’t want to. When someone receives payment in Bitcoin, they can choose to automatically receive it in dollars.” Meanwhile, even the introductory gift of $30 in BTC does not seem to be convincing many residents of Bitcoin.
Already first surveys showed little conviction
Already after the announcement to introduce Bitcoin as a means of payment, the first opinion polls in the country showed that the majority of the country is not convinced by this project. The goal of independence from the U.S. dollar would not be achievable with this project in the eyes of most people. The U.S. dollar has been the official currency in El Salvador since 2001.
Recently, the first rumors circulated about the introduction of El Salvador’s own stablecoin. However, President Nayib Bukele did not officially confirm this.
Six weeks to go until Bitcoin will be introduced as El Salvador official currnecy
Currently, there are still about six weeks until Bitcoin is finally introduced as legal tender. Initially, Bukele was still determined to implement this. But after initial criticism from the World Bank and the International Monetary Fund, the development of infrastructure is making the project in the country difficult anyway. Support has so far been offered by at least some crypto companies.
Whether the introduction of Bitcoin on September 7th, 2021, will remain can at least be doubted at the moment. It remains exciting to see which forms the demonstrations will take and whether such a large share of the population is really critical of the project.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Buffalo Partners]
First, they came for your college campuses. Then they came for your news, your politics, and you entertainment. And now,...
Redeban Boosts its Leadership in Colombia with the Acquisition of SoyYo
The SoyYo brand will be maintained and enters Redeban's portfolio as one of its strategic units. SoyYo is a recognized...
Why the Growth of Real Estate Crowdfunding in Mexico Slows in 2023
An amount that could make real estate crowdfunding more attractive is 500 million pesos or more. Likewise, he added that...
Biomedical Companies in Spain Demand Tax Incentives for R&D Adapted to the Reality of the Sector
There are many companies in the biomedical sector that, being in the investment or expansion phase, have negative or reduced...
Switzerland Will Probably Legalize Cannabis in the Next Four Years
Switzerland has the advantage that it has already introduced legalization tests in various municipalities. Each test can cover up to...
Fintech2 weeks ago
Lago Partnership with PlusAdvance Launched in 2023 Has Been Renewed
Impact Investing5 days ago
The Negative Impact of the Energy Transition in France on the State Budget by 2030
Biotech1 week ago
Biogen Reaches $9.8 Billion in Revenue in 2023, Down 3%
Business2 days ago
This Kevin Harrington-Endorsed Company’s Set to Soar in a Perfect Storm [RDE, Inc. | RSTN]