Hundreds of protesters took to the streets of El Salvador to raise their voices against President Nayib Bukele's decision to make Bitcoin BTC/USD legal tender.
What Happened: On Sept 7, Bukele will introduce the much-debated Bitcoin Law in the country.
According to the text of this Law, all economic agents must accept Bitcoin along with the dollar as a means of payment.
Bukele says that the Bitcoin Law will benefit the people and save close to $400 million in remittance commissions. In addition, it will guarantee instant and more secure financial transactions.
But the people of El Salvador are not entirely convinced with it.
Hundreds of protesters, including workers, veterans, and pensioners, marched through San Salvador to voice their concerns about the use of cryptocurrency.
They are worried that with the law, they will be paid in crypto for their pensions and welfare instead of the US dollar.
There is also a concern that people don't understand the technology needed to use crypto-currency.
Also Read: Majority Of Citizens In El Salvador Don't Approve Of President's Plan To Adopt Bitcoin: Report
"We know this coin fluctuates drastically. Its value changes from one second to another, and we will have no control over it," Stanley Quinteros, a member of the Supreme Court of Justice's workers' union, told Reuters.
Protesters are wary that the introduction of Bitcoin may encourage corruption which is already seen within its borders.
However, as per the law, it does not mean that everyone has to conduct their transactions in the cryptocurrency.
Why It Matters: Bukele has already instructed a state-owned geothermal electric company to plan to offer Bitcoin mining facilities 100% renewable energy.
"The purpose of this law is to regulate bitcoin as unrestricted legal tender with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out," states the proposed law.
The country currently uses the US dollar for transactions, and it has no say when it comes to US monetary policy.
The US Federal Reserve can adjust the supply of dollars as per its requirement, and El Salvador may have to face inflation if it continues to transact in the dollar.
The Salvadoran Association of International Cargo Carriers (ASTIC) has threatened to charge an additional 20% fee to those paying for freight in Bitcoin to protect against the cryptocurrency's volatile nature.
Read Next: El Salvador Adopting Bitcoin Is "An Inadvisable Shortcut": International Monetary Fund
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
