Incomplete with the recognition of Bitcoin, the official payment facility was published for a protest in the capital of El Salvador. People rebelled due to fear of financial instability and possible illegal transactions. It is reported by “BBC” .
More than a thousand protesters gathered at the Supreme Court building in San Salvador after the entry into force of the Bitcoin’s recognition law by the National Currency. In the sign of disagreement, the Salvadoranians burned tires and launched fireworks. “The law on Bitcoin was approved in parliament without any debates. It took only about five hours to take it,” said Johnny’s opposition politician Wright Sol, who spoke against the recognition of cryptocurrencies.
Salvador became the first country in the world, which accepted Bitcoin as an official means of payment. The day before the entry into force of the law on the adoption of Bitcoin, its value rose to the record from May 52 thousand dollars due to the support of the “sofa” investors from Reddit and Twitter, which began to buy Bitcoin. On the official adoption of the law on September 7, the Bitcoin rate dropped to 46.8 thousand dollars, and by September 8 fell to 43 thousand dollars. Against this background, Salvador is one of the poorest countries in Latin America – lost $ 3 million, according to Sola.
Salvadorians fear that in addition to such financial instability, the number of illegal cryptocurrency transactions will grow. “The state supports payments in Bitcoins and assumes the risk, but in the end, all taxpayers are a state,” said Sol. At the same time, the Government of El Salvador draws attention to the positive parties to the adoption of Bitcoin.
President Salvador Naibe Bowel believes that the recognition of Bitcoin’s official payment facility will simplify for citizens of the country working abroad, sending money to their homeland. These funds make up almost a quarter (24 percent, or 6 billion dollars) of Salvador GDP, but during translations are subject to the Commission. It is assumed that Bitcoin can save the country from 170 to $ 400 million per year at the Commission for the transaction of funds from abroad. “We have to break the paradigms of the past. Salvador has the right to advance towards the countries of the first world,” wrote in his twitter Account. To stimulate the adoption of a new currency, the government plans to allocate Salvadads for $ 30 in Bitcoins. Salvador bought a total of 550 bitcoins.