El Salvador made history on Tuesday with the entry into force of a bitcoin law, sanctioning the leading cryptocurrency as legal tender in the South American country.
However, since President Bukele first introduced the bill, there have been shouts of indignation among Salvadorans.
After the law was passed on Tuesday, discontent has increased significantly, both in the number of protesters and their acts of protest.
With that in mind, is it time to admit that the entire world is still not ready for Bitcoin?
Cracks appear in President Bukele’s plans
President Bukele shocked the world at the Bitcoin Conference in Miami, in June, by announcing plans to make El Salvador the first sovereign country to adopt Bitcoin as a legal lender.
During his video message, President Bukele spoke about helping the unbanked, who make up 70% of the population. In addition to facilitating the flow of remittances from Salvadorans abroad who send money home.
In the three months since, after Congress voted on them, President Bukele’s plans have faced fierce criticism that has caused a split in opinion.
At first, the protests consisted of small numbers and the (apparently older) protesters were chanting Fears Bitcoin is not for ordinary people with minimum wages.
They spoke privately about their discomfort with price volatility, and how it puts people at a loss as a result.
“For people with minimal wages, one moment you can get $300 of bitcoin and the next day $300 can become $50. Today we saw how the price of the cryptocurrency went down.”
Bitcoin is not forced on anyone
With no compromise in the power of feeling, the protests began to grow in size and intensity.
As I mentioned The islandSalvadorans marched through the capital, San Salvador, on the day the bitcoin law was passed. Demonstrators burned tires and set off fireworks in front of government buildings.
Such was the scale of the protest that heavily armed riot police were deployed, indicating a threat factor that was not present during previous protests.
Echoing earlier concerns that Bitcoin is not for ordinary people, one protester said:
“This is an ideal currency for large investors who wish to speculate on their economic resources.”
Jack Maller, CEO of Strike, the company behind the El Salvador wallet infrastructure, made it clear that the legislation does not force Bitcoin on anyone.
Instead, Maller said, El Salvador operates a dual-currency system with people having the option to switch between dollars and bitcoin, and vice versa, within the Chivo wallet. This leaves people with the option of doing as they please.
“We are allowing dollars, like a traditional American bank account, to be interoperable with this open cash network. So you can send and make Bitcoin payments in dollars, and receive Bitcoin payments in dollars.”
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