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El Salvador legislators already want to remove Bitcoin as legal tender

The days of adopting Bitcoin as legal tender in El Salvador may be over. That’s because a group of opposition deputies is uniting to reverse the decision.

El Salvador legislators already want to remove Bitcoin as legal tender

El Salvador legislators already want to remove Bitcoin as legal tender

Through a Bill (Law) presented to the national legislature, parliamentarians intend to reform the law that instituted the cryptocurrency as the country’s official currency.

The bill in question was formulated by Deputies Anabel Belloso and Dina Argueta. They believe that adopting the BTC puts El Salvador’s economic system and family finances at risk.

More precisely, lawmakers questioned the “obligation” that the law expresses about using Bitcoin to pay for products or services.

According to the lawmakers, the Bitcoin Law was drafted without consultations and approved quickly, without due debate.

“The risks are there. Within the reforms, in the first place, it is eliminated that Bitcoin is recognized as legal tender. This is the first article within the object. The law contains elements that generate uncertainty and risks for money laundering”, explained Belloso in statements to the media.

The deputy said she is not against innovation and technological development. However, he stressed that Bitcoin cannot be adopted by “imposition” because this would represent a violation of citizens’ rights.

Regarding the implementation of digital assets in the Central American country, Belloso highlighted that this process should be voluntary. According to her, among Salvadorans there are uncertainties about how to operate the
cryptocurrency and manage the resources.

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In addition, she criticized that the government’s decision was hasty. After all, the subject involves complex issues such as potential wage payments in Bitcoin instead of US dollars.

The deputies argued that article 7 of the law is the one that “generates the most noise”. The layout says the following verbatim:

“Every economic agent must accept Bitcoin as a form of payment when it is offered by someone who purchases a good or service.”

Lawmakers stressed that the law, as proposed, is an imposition. However, article 12 clarifies:

“Excluded from the obligation expressed in article 7 of this law are those who, by a notorious fact, do not have access to technologies that allow the execution of transactions in Bitcoin. The State will promote the training and mechanisms necessary for the population to have access to Bitcoin transactions”

Although the bill has been introduced, the scope of the reform is unlikely to continue as the Legislative Assembly has a pro-government majority. In other words, it supports the decisions of the President of the Republic, Nayib Bukele.

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