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Citizens of El Salvador took to the streets in protest last Friday over the legal adoption of Bitcoin in the country. This action comes just a few days before El Salvador legalizes the Bitcoin Law, which would allow the country to make BTC an official legal currency along with the USD.
While El Salvador President Nayib Bukele maintains an upbeat outlook on the Bitcoin move, it appears that many citizens do not share that sentiment. Last Friday, hundreds of protesters marched through the capital city, San Salvador, to communicate their concerns on the use of BTC.
Many workers and pensioners conveyed dissent over the plan to pay pensions and welfare payments in Bitcoin. Protesters carried placards reading “Bukele, we don’t want bitcoin” û “No to corrupt money laundering.” Stanley Quinteros, a member of the Supreme Court of Justice’s workers’ union, told Reuters that:
“We know this coin fluctuates drastically. Its value changes from one second to another, and we will have no control over it.”
Other Countries Are Monitoring the Bitcoin Adoption Development in El Salvador
One of the crucial reasons behind the move to legalize BTC by the government is to reduce cross-border remittance costs. Interestingly, some Central American nations harbor similar intentions but are monitoring the progress of El Salvador before taking action.
Many countries are also looking enthusiastically to see if making Bitcoin a legal tender would impact cross-border remittance costs. In an interview with Reuters, executive president of the Central American Bank for Economic Integration (CABEI) Dante Mossi noted that:
“Everyone is watching if it goes well for El Salvador and if, for example, the cost of remittances drops substantially … other countries will probably seek that advantage and adopt it.”
Meanwhile, the International Monetary Fund (IMF) remained opposed to integrating Bitcoin into the mainstream financial sector.
In a recent tweet, the organization referenced a previous blog post explaining the volatility of the asset class and the potential risks it poses to financial stability. One of the IMF’s primary concerns was that “monetary policy would lose bite” ji ber “Central banks cannot set interest rates on a foreign currency.”
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