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El Salvador Deputies Presented Reform To Eliminate Bitcoin As Legal Currency

A bill to reform the law that seeks to eliminate bitcoin (BTC) as legal tender in El Salvador was presented this Wednesday, June 16, before the Legislative Assembly. Opposition deputies Anabel Belloso and Dina Argueta consider that the adoption of cryptocurrency endangers the economic system and family finances.

The legislators questioned the “obligation” that the law expresses on the use of bitcoin to pay for products or services. For the congresswomen, the Bitcoin Law was prepared without consultations and approved in an expedited manner, without the necessary debates.

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

The official said that she is not against innovation and technological developments, but said that bitcoin cannot be adopted by “imposition” since the rights of the population are being violated. Regarding the implementation of the digital asset in the Central American country, Belloso stressed that this process must be voluntary.

According to the legislator, among Salvadorans there is uncertainty about how to operate with the cryptocurrency or how to manage the funds. In addition, he criticized that the government’s tone on this issue is hasty and that it involves potential salary payments, or other benefits, in BTC and not in US dollars. Regarding the payment of workers, the Minister of Labor, Rolando Castro, indicated that it is a premature issue.

Bitcoin as an alternative in El Salvador
The deputies argued that article 7 of the law is the one that generates the most “noise.” The provision reads the following verbatim: “Every economic agent must accept bitcoin as a form of payment when it is offered to him by whoever acquires a good or service.” The legislators pointed out that the law, as it is proposed, is an imposition. However, article 12 clarifies:

«They are excluded from the obligation expressed in article 7 of this law, who by a notorious fact and obviously do not have access to the technologies that allow the execution of transactions in bitcoin. The State will promote the necessary training and mechanisms so that the population can access bitcoin transactions.

The scope of the reform of the law would have a null or very limited impact since the Legislative Assembly has a pro-government majority, that is, they support the decisions of the President of the Republic, Nayib Bukele. From the foregoing, it follows that the proposal would not go to debate or would be rejected by the parliamentarians, who approved the law last week , a fact reported by CriptoNoticias.

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