Between protests and failures, trial of bitcoin begins in El Salvador

protests, technical failures and confusion is what is experienced in El Salvador due to the approval of the cryptocurrency. Photo: Courtesy Nelson Renteria.
Editorial Dept. Voz de la Diaspora

The Savior – Driven by the startup of bitcoin as legal tender, Hundreds of Salvadorans took to the streets on Tuesday to protest that measure and the dismissal of 249 judges for the government of Nayib Bukele. Old and new anti-government slogans were heard loudly.

The decision of the popular ruler, rated authoritative by critics, started with problems because the system crashed in the early morning. "Chivo wallet will not work for a few moments", the government said in a statement citing Bukele, who added "better slowly and with good lyrics".

Rally in protest over the virtual currency Bitcóin. Photo: Courtesy Nelson Renteria.

But the volatility of the currency was also tested since in 12 hours were lost one 2,0 millions of dollars, experts said. Due to this instability, the virtual currency can recover and have figures upwards like those it had before the beginning of the validity in the country.

Employees, workers, students, teachers and judges, most with their masks in protection against the pandemic, marched through the streets of the capital carrying signs and shouting slogans against Bukele. There were two marches that met in front of the Assembly headquarters. Observers calculated 1,500 people.

Photo: Courtesy.

"The working class rejects cryptocurrency" and "Bukele dictator", were some of the posters carried by the protesters. One of them said that they would deliver a piece of correspondence to the Assembly "so that they can repeal the nefarious bitcoin law.". And they delivered two petitions but in the early hours of the night they were rejected by the deputies.

They also asked during the march that reforms to the Law of the Judicial Career be repealed for which they will be fired 249 judges and magistrates greater than 60 years. The request was not even received by the reception employees of the Assembly, despite the fact that deputies from the leftist Fmln and the right-wing Arena accompanied them.


On Tuesday night the magistrate of the Environmental Chamber of Santa Tecla, Samuel Lizama, tweeted: "Finally and after many unreasonable obstacles and various efforts, we received the request to repeal the decree of reforms to the Law of the Judicial Career, in the Legislative Assembly. "

The specialized agency Bloomberg previously said that bitcoin raised prices before the entry into force in El Salvador due to a movement promoted by social networks such as Twitter and Reddit for many to buy the cryptocurrency and boost its price. And they made it.

Photo: Courtesy Nelson Renteria.

For the currency to take effect, the government invested more than 200 million dollars to promote its use among the population. It was said that 150 millions went to create a trust or convertibility fund; others 23,3 to finance the project cryptofriedly and 30 million more  To grant 30 dollars to users who open an account in the Chivo wallet. The money comes from the National Fund.

The population has little information on how to use virtual currency and public opinion polls have rejected it.

The Institute of Public Opinion (IUDOP) from the Jesuit Central American University (UCA) revealed last week that nearly a 68 Percent of the surveyed population disagrees with the measure that was approved in June through an express law of the Legislative Assembly dominated by deputies from the New Ideas party of Bukele.

Y 8 out of ten Salvadorans distrust the use of cryptocurrency and do not believe that it will serve to improve the family economy, was another of the conclusions of the survey.

El Salvador has the US dollar as its legal currency since 2001 Y  a little more of 2,5 Millions of Salvadorans abroad send remittances that reach more than 20 percent of annual GDP. For this year financial authorities believe that shipments will exceed figures and is likely to reach almost the 7,0 billion.