- El Salvador’s opposition party sued the government over the new Bitcoin law, calling it unconstitutional.
- Many citizens have also indicated support of the opposition, saying the new legislation did not consider harmful effects.
- A whopping 80% of citizens expressed that they did not want to receive payments in the leading cryptocurrency.
The deputy leader of El Salvador’s opposition party has recently filed a lawsuit against the new legislation that makes Bitcoin legal tender in the country.
Bitcoin law to ‘loot people’s pockets’
The Farabundo Marti National Liberation Front (FMNL) deputy leader, Jamie Guevara, has filed a lawsuit to oppose the new Bitcoin law in El Salvador.
Guevara has been backed by a group of Salvadoran citizens who believe that the new Bitcoin legislation is unconstitutional. Together, the joined forces aim to argue against the El Salvador Bitcoin law that would come into effect in the next few months.
A citizen named Oscar Artero said:
“I bring a lawsuit of unconstitutionality against the decree issued by the Bitcoin Law for being a decree lacking legality, lacking foundation, without considering the significance and harmful effects that such a law will cause to this country.”
Salvadoran President Nayib Bukele brought forward the proposal allowing Bitcoin to become legal tender, which was approved and set into legislation earlier this month.
Bukele believes that the leading cryptocurrency would help Salvadorans quickly and cost-effectively send remittances back to their home country. He further stated that Bitcoin would allow for more financial inclusivity.
“The Bitcoin Law is to loot people’s pockets; it is tax-exempt, they want to force us to trade.”
According to a local news outlet, Guevara and his colleagues are not the only ones who disagree with the new Bitcoin law. The Salvadoran Chamber of Commerce survey found that 80% of Salvadorans would not agree to receive payments in the bellwether cryptocurrency.
The strong opposition rides on the back of the country’s long history of significant corruption in public and private Salvadoran life. According to The Economist, El Salvador’s hybrid regime has led Latin American states' decline toward authoritarianism in 2020.
While citizens remain in fear of further corruption, Transparency International’s Corruption Perceptions Index rated El Salvador’s handling of corruption 36/100 last year.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.