Deputy Portillo Cuadra believes that the Bitcoin Law would make the price of electricity more expensive. Parliamentarian Johnny Wright asked to change the Labor Code for the payment of wages in US dollars.
The deputies representing the Republican Nationalist Alliance (Arena) party recently requested the Legislative Assembly of El Salvador to repeal the Bitcoin Law. However, this request to remove the legal tender status of the cryptocurrency does not have majority support.
According to the Salvadoran newspaper El Mundo, other deputies did not support the proposal that they made.
Deputy of the Arena party René Portillo Cuadra argued that the Bitcoin Law would make electricity more expensive. He said that this law is causing financial organizations to be unable to make loans to El Salvador.
Deputies Numan Salgado and Romeo Auerbach represent the Great Alliance for National Unity (Gana), a party allied with the ruling party. When they heard about Portillo Cuadra’s position on the regulations, they stated that their party does not support the repeal of the Bitcoin Law.
Salgado added that Arena and the Farabundo Martí National Liberation Front (FMLN) want to change or repeal that law. He suggests that they are seeking to cause uncertainty and fear among Salvadoran citizens.
“Arena and the FMLN reject the implementation of the Bitcoin Law, aiming to cause fear in the population. Besides, they want to create mistrust and make the implementation of this digital currency unsuccessful. We believe that they are defending the formal financial sector as they would lose the commissions for all their monetary transactions,” said Salgado.
Other Deputies Defend the Bitcoin Law
Reinaldo Carballo, deputy of the Christian Democratic Party (PDC), defended the Bitcoin Law, whose regulations they will introduce in 90 days. Carballo said that these rules would only affect the financial sector of El Salvador when it comes into effect.
“Bitcoin will be a virtual currency that we will use in transactions and earn those commissions that they charge us from the United States. For that reason, I do not support the Arena initiative,” Carballo said.
The Bitcoin Law Arouses Controversies among Parliamentarians
Marleni Funes, a deputy of the FMLN, was willing to study the proposal to repeal the Bitcoin Law. Despite this, she considers that the initiatives of the opposition deputies against this regulation will not succeed.
According to Funes, neither the reform nor the repeal will pass in this Legislative Assembly. She also questions this Constitutional Chamber, where the population must organize and show its position on this law.
Before supporting the repeal of the Bitcoin Law, the parliamentarian reiterated that she must know the Arena proposal deeply.
Deputy Johnny Wright Sol of the Arena party suggested reforming the Labor Code. According to this regulation, they will receive the salary in the legal tender. From September 7th, the US dollar and Bitcoin will coexist in El Salvador.
For this reason, Wright Sol asks to reform the Labor Code to establish the payment of wages in US dollars. However, the Supreme Court of Justice of El Salvador will judge whether the Bitcoin Law is against the Constitution.
In his capacity as a Salvadoran citizen, lawyer Óscar Artero claimed the above-mentioned legal initiative as unconstitutional. On June 8th, the law received approval before the Constitutional Chamber of the highest Salvadoran judicial authority.
By Alexander Salazar
