Bitcoin law goes online countdown one week, Salvadorans take to the streets to protest: No one wants Bitcoin
The Bitcoin Law in El Salvador is set to officially come into effect on 9/7. Despite official clarifications that it is "completely optional" for businesses and merchants to accept Bitcoin payments, concerns have arisen, leading to protests by the public demanding amendments to the Bitcoin Law.
El Salvador passed the Bitcoin Law with an absolute majority on 6/9, and now, 90 days later, the law will officially go into effect on 9/7. However, the high volatility of Bitcoin has become an issue that the Salvadoran population does not want to face, and there is strong opposition to the possibility of pensions and retirement funds being paid in the form of Bitcoin.
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No One Wants Bitcoin
Protesters taking to the streets in El Salvador include workers, veterans, and citizens about to receive pensions, expressing concerns over cryptocurrency and Bitcoin, still preferring the US dollar as the main legal tender. Their protest signs read:
Bukele, President of El Salvador, we don't want Bitcoin, no to money laundering.
The public's worry stems from the high volatility. Protesters, interviewed by foreign media, pointed out:
We know this currency is highly volatile, changing every minute, we can't control it, almost no one wants Bitcoin, and a country known for its authoritarian and opaque policies adopting Bitcoin may further exacerbate corruption issues.
Businesses: Charging an Extra 5% for Bitcoin Payments
The Salvadoran Association of International Transport Workers (ASTIC) strongly demands the government to amend Article 7 of the Bitcoin Law, which mandates that Bitcoin must be accepted as a form of payment by "every economic agent." ASTIC also presented their counterproposal on Twitter:
We will charge a 5% commission for Bitcoin payments received, meaning $50 can be earned for every $1,000, what we want is dollars, and it's good business.
Al recibir BITCOIN y cambiarlos a dólares habrá un 5% de comisión. Es decir $50 por cada $1000, que queramos obtener mis propios dólares.
BONITO NEGOCIO.
Según Marvin Aguilar— ASTIC (@Astic_SV) August 26, 2021
Previously, Salvadoran President Nayib Bukele stated on the day the law was passed that the relevant Bitcoin infrastructure would be in place within 90 days. However, Eduardo Cader, Chairman of the Salvadoran Industry Association, criticized on Twitter:
Bitcoin will be in circulation in just 27 working days? There are no regulations, no one knows its advantages, operability, registration, transactions, financial management, etc. Even today, many banks and monetary policy experts still oppose it. Article 12 of the law also mentions that the country will provide necessary training to promote public adoption. Where is it? When? How will the training be conducted? Can you imagine the chaos it might cause?
As of now, some tweets indicate that these protesters were paid, with some not even aware of what they are protesting against. Bukele also retweeted a video to echo his sentiments, but it is a fact that businesses are opposing, and there is indeed a contradiction between the ability to choose not to accept Bitcoin and the provisions of Article 7.