{"id":337774,"date":"2021-09-11T09:07:00","date_gmt":"2021-09-11T06:07:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/el-salvadors-bitcoin-detractors-opposition-mounts-despite-crypto-rollout\/"},"modified":"2021-09-11T09:07:00","modified_gmt":"2021-09-11T06:07:00","slug":"el-salvadors-bitcoin-detractors-opposition-mounts-despite-crypto-rollout","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/el-salvadors-bitcoin-detractors-opposition-mounts-despite-crypto-rollout\/","title":{"rendered":"# El Salvador\u2019s Bitcoin detractors: Opposition mounts despite crypto rollout"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a35ff57ecadb\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a35ff57ecadb\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/el-salvadors-bitcoin-detractors-opposition-mounts-despite-crypto-rollout\/#How_Bitcoin_became_legal_tender\" >How Bitcoin became legal tender\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/el-salvadors-bitcoin-detractors-opposition-mounts-despite-crypto-rollout\/#The_first_wave_of_resistance\" >The first wave of resistance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/el-salvadors-bitcoin-detractors-opposition-mounts-despite-crypto-rollout\/#The_arrest_of_Mario_Gomez\" >The arrest of Mario G\u00f3mez<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/el-salvadors-bitcoin-detractors-opposition-mounts-despite-crypto-rollout\/#The_citizens_protest\" >The citizens&#8217; protest<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/el-salvadors-bitcoin-detractors-opposition-mounts-despite-crypto-rollout\/#Mixed_opinions\" >Mixed opinions<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># El Salvador\u2019s Bitcoin detractors: Opposition mounts despite crypto rollout <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDkvMzczZjNkMjMtMTExMS00NTEwLWEwNDgtZWQyNmMwN2JhMjhmLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-128018ef>The year 2021 will probably go down the history books as one of Bitcoin\u2019s (BTC) most interesting years, given its recent uptake by billionaires and adoption by mainstream institutions, not to mention El Salvador\u2019s move to make it legal tender.\u00a0<\/p>\n<p>In El Salvador\u2019s case, it almost seems as if the whole world is watching this experiment to see whether it will be a success or a total failure for the Central American nation.<\/p>\n<p>With Sept. 7 marking the official implementation of Bitcoin as a legal tender in El Salvador, a wave of protests in the country against the move has roused suspicions and uncertainty over how the new law will be enforced.\u00a0<\/p>\n<p>From the arrest of individuals criticizing the Salvadoran government over the new law, to the wave of citizens across the country protesting Bitcoin\u2019s legal status, the seminal crypto is facing some headwinds.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_Bitcoin_became_legal_tender\"><\/span>How Bitcoin became legal tender\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It all began in early June after Salvadoran president Nayib Bukele announced in a tweet that the country\u2019s legislative assembly had passed a bill making Bitcoin legal tender. The law was set to be implemented on Sept. 7 and would see the country&#8217;s 4.5 million citizens able to make purchases with Bitcoin at stores nationwide.\u00a0<\/p>\n<p>In his announcement, Bukele said that once an official bill to make Bitcoin legal tender was passed, \u201cChivo ATMs\u201d \u2014 Chivo being the name of the official BTC wallet for El Salvador \u2014 would eventually be \u201ceverywhere\u201d in the country. This would allow El Salvadorans to withdraw Bitcoin in cash without incurring any commissions on their holdings, as is the case with services such as Western Union.\u00a0<\/p>\n<p>Moreover, Bukele assured citizens that no one will be forced to use Bitcoin. In a statement, the 40-year-old president said that \u201csomeone can always queue up at Western Union and pay a commission.\u201d<\/p>\n<p>\u201cWhat if someone doesn\u2019t want to use Bitcoin? [Well] don\u2019t <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">download<\/a> the app and continue living your normal life. Nobody is going to take your dollars,\u201d he said.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_first_wave_of_resistance\"><\/span>The first wave of resistance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Following the announcement, a group of protestors called the Popular Resistance and Rebellion Block (BRRP) block emerged to protest against the Bitcoin law.<\/p>\n<p>\u201cPresident Nayib Bukele passed the law making the cryptocurrency legal tender in the country without proper consultations with the people,\u201d one activist said.<\/p>\n<p>Although the protest group highlighted complexities such as Bitcoin\u2019s volatility as reasons for caution, their main claim is that the law mainly serves large businesses linked to alleged money laundering to the benefit of corrupt officials.<\/p>\n<p>\u201cBitcoin only serves some large businessmen, especially those linked to the government, to launder ill-gotten money,\u201d one protestor said.<\/p>\n<p>A letter from the BRRP group said that \u201centrepreneurs who put their capital in Bitcoin will not pay taxes on their earnings and the government would spend millions worth of taxes to execute the whole campaign.\u201d<\/p>\n<p>Indeed, the bill to make Bitcoin legal tender includes some interesting proposals such as a zero capital gains tax on BTC. The bill also promised investors permanent residency in the country with a three BTC investment in El Salvador.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_arrest_of_Mario_Gomez\"><\/span>The arrest of Mario G\u00f3mez<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As the controversial Bitcoin bill became a law on Sept. 7, both supporters and detractors continue to emerge with the latest in events around the law being the arrest of Mario G\u00f3mez.<\/p>\n<p>According to several local <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> outlets in El Salvador, Mario G\u00f3mez \u2014 a computer and crypto expert as well as an avid critic of the government \u2014 was arrested by local police and held for a few hours before being released.<\/p>\n<p>G\u00f3mez has been known to regularly post on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social media<\/a> opposing the government\u2019s move to make Bitcoin legal tender.\u00a0<\/p>\n<p>Observers such as Steve Hanke \u2014 an economist from Johns Hopkins University \u2014 criticized G\u00f3mez&#8217;s arrest as an \u201cauthoritarian police tactic in action.\u201d<\/p>\n<p>Hector Silva, a counselor of the mayor\u2019s office in San Salvador, said, \u201cthe arrest of Mario portrays the fragility of the government in terms of the implementation of the Bitcoin law but confirms something even more dangerous.\u201d<\/p>\n<p>\u201cThey are willing to manipulate whatever institutions are necessary to push critical voices out of the way,\u201d added Silva.\u00a0<\/p>\n<p>Although the police released a statement saying that G\u00f3mez was detained as part of a financial fraud investigation, news reports showed that he was arrested without a warrant and an attempt was made to take possession of his phone and computer.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_citizens_protest\"><\/span>The citizens&#8217; protest<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Right before G\u00f3mez&#8217;s arrest, retirees in El Salvador took to the streets to protest, worried about the government using the volatile cryptocurrency to pay their pensions.<\/p>\n<p>While <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/news.sky.com\/story\/bitcoin-protests-and-confusion-in-el-salvador-as-country-prepares-to-make-cryptocurrency-legal-tender-12400516\">speaking<\/a> to reporters, one demonstrator from the crowd \u2014 which included veterans, disability pensioners, workers and retirees \u2014 said, \u201cwe know this coin fluctuates drastically. Its value changes from one second to another, and we will have no control over it.\u201d<\/p>\n<p>While Bukele has promised that the use of Bitcoin in the country will be optional and that salaries and pensions will still be paid in United States dollars, the protestors still highlighted a lack of knowledge of the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>.<\/p>\n<p>Citizens have also complained that there has been too little explanation from officials about the pros and cons of Bitcoin.<\/p>\n<p>\u201cWe don\u2019t know the currency. We don\u2019t know where it comes from. We don\u2019t know if it\u2019s going to bring us profit or loss. We don\u2019t know anything,\u201d one Salvadoran added.\u00a0<\/p>\n<p>In response, Bukele\u2019s administration has <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.presidencia.gob.sv\/gobierno-capacitara-a-salvadorenos-sobre-uso-de-monedero-oficial-con-la-entrada-en-vigencia-de-la-ley-bitcoin\/\">stated<\/a> that the use of Bitcoin is not mandatory and that necessary training and other alternatives to Bitcoin will be provided.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Mixed_opinions\"><\/span>Mixed opinions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Although President Bukele <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/elsalvadorinfo.net\/nayib-bukele-approval-rate\/\">enjoys<\/a> incredibly high approval ratings, recent polls concerning the Bitcoin law show a widespread <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-09-07\/bitcoin-faces-biggest-test-as-el-salvador-makes-it-legal-tender\">lack<\/a> of support for the measure.<\/p>\n<p>A recent poll conducted by El Salvador&#8217;s Universidad Centroamericana Jos\u00e9 Sim\u00e9on Ca\u00f1as shows that up to two-thirds of respondents are inclined towards a move to repeal the law, and more than 70% prefer the U.S dollar over Bitcoin.<\/p>\n<p>International institutions like the International Monetary Fund have also <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-06-10\/imf-sees-risks-in-el-salvador-law-making-bitcoin-legal-tender\">warned<\/a> about macroeconomic, financial and legal issues brought about by El Salvador\u2019s adoption of Bitcoin.<\/p>\n<p>Siobhan Morden, head of Latin America Fixed Income Strategy at Amherst Pierpont, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-06-10\/imf-sees-risks-in-el-salvador-law-making-bitcoin-legal-tender\">said<\/a> that \u201cthe plans for Bitcoin under an increasingly autocratic regime will likely only compound concerns about corruption.\u201d<\/p>\n<p>On the flip side, others remain optimistic that the new law will eventually benefit Salvadorans given that the country\u2019s economy is heavily reliant on remittances sent home by migrants overseas. Last year alone, the country\u2019s remittances totaled $6 billion, accounting for a fifth of gross domestic product.<\/p>\n<p>\u201cEl Salvador\u2019s adoption of Bitcoin as legal tender by law offers the country some optionality in financial matters and sovereignty,\u201d said Alexander Blum, managing director of Two Prime.\u00a0<\/p>\n<p>His sentiments were echoed by Alberto Echegaray Guevara \u2014 an artist and entrepreneur \u2014 who said, \u201cPresident Bukele\u2019s Bitcoin Law is not only trying to make international money transfer cheaper and easier for 70% of his unbanked population but also creating a new economic hub and new remittances platform in Central America.\u201d<\/p>\n<p>Adrian Pollard from HollaEx told Cointelegraph, \u201cIt is typical for new technology rollouts to have bugs and apposition but that\u2019s exactly why it was made voluntary.\u201d<\/p>\n<p>\u201cI suspect there will be more bumps along the road for El Salvador but it will be worth it long term. In fact, I believe other South American nations aren\u2019t far behind and will follow,\u201d added Pollard.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/el-salvador-s-bitcoin-detractors-opposition-mounts-despite-crypto-rollout\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# El Salvador\u2019s Bitcoin detractors: Opposition mounts despite crypto rollout &#8221; The year 2021 will probably go down the history books as one of Bitcoin\u2019s (BTC) most interesting years, given its recent uptake by billionaires and adoption by mainstream institutions, not to mention El Salvador\u2019s move to make it legal tender.\u00a0 In El Salvador\u2019s case,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":337775,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDkvMzczZjNkMjMtMTExMS00NTEwLWEwNDgtZWQyNmMwN2JhMjhmLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74863,74355,90059,71511,55229,70934],"class_list":["post-337774","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-cryptocurrencies","tag-adoption","tag-el-salvador","tag-government","tag-law","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/337774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=337774"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/337774\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/337775"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=337774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=337774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=337774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}