Key Takeaways

The opposition in El Salvador has filed a case against the new Bitcoin law, deeming it unconstitutional and baseless.
Reportedly, citizens and businesses in El Salvador also have reservations about the new law.
Nonetheless, the government has continued with its efforts to successfully implement BTC payments.

Share this article

The Farabundo Martí National Liberation Front (FMLN) party in El Salvador is backing a public lawsuit against the government to abolish the Bitcoin legal tender law for being “unconstitutional.” 

El Salvador Faces Bitcoin Battle

After international monetary organizations, an El Salvadorian opposition party is the newest challenger to the Bitcoin law. 

Citizens of El Salvador led by opposition party FMNL have moved the Constitutional Chamber of the Supreme Court of Justice (CSJ) against the new Bitcoin legal tender law, Spanish news outlet El Mundo reported Monday.

According to the FMLN party’s deputy Jaime Guevara, the Bitcoin law has “no legal basis” and is formed “to loot people’s pockets, it is tax-exempt, they want to force us to trade.”

a new meme fiat economists are spreading is that a) El Salvador’s law (which is unimplemented – many gaps to be filled in) is guaranteed to coerce merchants nationwide to adopt Bitcoin, and b) that regular Bitcoiners are somehow morally responsible for this

— nicolás carretero (@nic__carter) June 17, 2021

Óscar Artero, one of the lead plaintiffs in the case, stated that the law was passed without careful consideration and legal thinking. 

President Nayib Bukele’s New Ideas party currently holds 56 out of 80 seats of the country’s parliament while FMNL has four. The law to make Bitcoin legal tender was passed with a 62/80 vote.

The El Mundo report also cited another rumor rampant in El Salvador that the government secretly wants to ban the law. According to an expert lawyer in the country, Enrique Anaya, the President is unprepared to implement the law and is thus looking for ways to roll back through invisible support to the opposition. Guevara denied colluding with the government on this. 

The Spanish report added survey results from a corporate alliance in which eight out of ten participants voted against the government’s decision. 

A Groundbreaking Law for Bitcoin

From day one of passing the law, the government has faced opposition from international organizations like the IMF. World Bank denied technical assistance to it as well. This is a setback for the country that relies heavily on economic assistance from these organizations.

World Bank MUST accept #Bitcoin from El Salvador, according to its founding charter (Section 12 of Article V)
– Forbes pic.twitter.com/oUZH32gBbs

— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) June 18, 2021

Nevertheless, the payment firm Strike leading the adoption is positive about the adoption. In a recent podcast with Peter McCormack, Jack Mallers, the CEO of Strike, confirmed the support of the top five banks and two biggest cashpoint distributors in El Salvador. He also announced plans to phase out USDT payments for Bitcoin. 

An El Salvadorian development bank has also agreed to provide technical help to the government to implement the new law. Sources on social media reported 1,000 Bitcoin ATMs being imported to El Salvador by Crypto Matic.

Still, reports of internal resistance clearly depict the pandemonium El Salvador has created through the iconic law. Its success or failure is critical in setting a precedence for other South American countries like Paraguay looking to follow El Salvador.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

El Salvador Passes Vote to Adopt Bitcoin as Legal Tender

A significant majority of El Salvador’s Legislative Assembly has approved the Bitcoin Law proposed by President Nayib Bukele. El Salvador Passes Historic Bill El Salvador has become the first country…

El Salvador Plans to Make Bitcoin Legal Tender

El Salvador looks set to become the first country to make Bitcoin legal tender.  El Salvador’s Bitcoin Bet  El Salvador is planning to adopt Bitcoin as legal tender, the country’s…

What is Kusama? How Polkadot’s playground accommodates blockchain de…

Kusama is relatively young and was founded in 2019 by Dr. Gavin Wood, who also founded the Web3 Foundation and co-founded Ethereum. The team behind Kusama is essentially the same…

After El Salvador, Paraguay Hints at Bitcoin PayPal Project

After El Salvador, Paraguay could be next up to come through with a major Bitcoin announcement.  Paraguay Hints at Bitcoin Move Paraguay is reportedly preparing to commence a big project,…





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

*

code

On this website we use first or third-party tools that store small files (cookie) on your device. Cookies are normally used to allow the site to run properly (technical cookies), to generate navigation usage reports (statistics cookies) and to suitable advertise our services/products (profiling cookies). We can directly use technical cookies, but you have the right to choose whether or not to enable statistical and profiling cookies. Enabling these cookies, you help us to offer you a better experience.