The government of El Salvador is preparing the infrastructure to facilitate the use of the pioneering cryptocurrency. There is still discontent among sectors of the population a few days before the law enters into force.
When the Bitcoin Law of El Salvador comes into force, the Central American country will become the first to adopt the cryptocurrency as legal tender. The experiment using the crypto asset to transform the ailing economy of the nation will then start.
Last June, President Nayib Bukele announced that El Salvador would adopt Bitcoin as legal tender. The country has since been the center of attention for bitcoiners and enthusiasts of the industry. Even El Zonte, a pioneering fishing community, is excited about using the first cryptocurrency. That has become an unexpected point of interest for tourists.
The government is preparing for the entry into force of the law on September 7th, so Salvadorans will have various services available for using Bitcoin. They will include 50 Chivo branches throughout the country, where people can deposit and withdraw money without paying fees. At those service desks, trained personnel will advise on using the government’s wallet and Bitcoin ATMs.
Bukele said that the Bitcoin Law would benefit the population, who will save close to USD 400 million in fees on remittances. He added that it would guarantee instant and more secure financial transactions.
The president highlighted that Salvadorans living abroad could send money to their relatives in El Salvador immediately. He explained that they might choose between transferring Bitcoin or US dollars and making the line at Western Union paying a fee.
Some retailers refuse to receive payments in Bitcoin, but others, like the Perronas Pizzeria and the Power Cycles motorcycle workshop, have begun to accept them.
Hundreds of Twitter users express their support for the measure promoted by Bukele. Some people believe it will benefit the population, while others applaud the country’s transformation, which is already underway.
There Are Still Protests to Reject the Bitcoin Law
However, not all sectors of society accept the Bitcoin Law, so there are frequent demonstrations and protests against the measure. The latest occurred on August 28th, when hundreds of workers, war veterans, and retirees marched to express their concerns about using the cryptocurrency.
It worries them that the law forces them to receive their pensions and other benefits in Bitcoin instead of US dollars. They also believe that most of the citizens do not yet know how to use the cryptocurrency.
About 900 people gathered in front of El Salvador University to protest against the Bitcoin Law, and they requested an increase in the benefits they receive.
In 2001, the Salvadoran Legislative Assembly approved the Monetary Integration Law, which meant implementing the US dollar. They believed that the country would so achieve more economic stability. However, its international reserves are currently diminishing while poverty is rapidly growing.
The US Federal Reserve can adjust the supply of US dollars at its convenience. Besides, El Salvador may have to face inflation if it continues to depend on the US dollar. The Bitcoin law seeks to regulate Bitcoin as legal tender with liberating power and unlimited in any transaction.
By Alexander Salazar
