El Salvador became the first country in the world to circulate bitcoin as an exchange currency alongside the US dollar on September 7 this year. Many of the Salvadorans who declared their protests disapprove of the currency.
Under legislation approved by the ruling party in the Legislative Assembly, economic agents must accept cryptocurrencies, and prices for all products and services must be expressed in U.S. dollars and bitcoin.
The government had more than $200 million to launch the project, and bought the equivalent of more than $21 million in bitcoin at prices registered on Monday on the eve of the regulations taking effect.
According to different investigations, the Bitcoin law came into effect amid widespread opposition from El Salvador, and there are different protests today calling for the rule to be rejected. The use of Bitcoin has become a major economic gamble for El Salvador President Nayib Bukele in the wake of the covid-19 pandemic since it was unexpectedly announced and quickly approved at a conference in Miami, United States.
Bukele is popular, his bitcoin is not
“Like any innovation, El Salvador’s #Bitcoin process has a learning curve. Every road to the future is like that, not everything will happen in a day or a month,”Bukele tweeted Monday night.. “But,” he added, “we have to break with the paradigms of the past. El Salvador has the right to move forward into the first world.”
Opinion polls showed it was the first project for Bukler to be rejected by a large majority of the population, despite the president’s popularity. According to the poll by the Public Opinion Institute, 66.7% believe that the Bitcoin law should be repealed, and 65.2% disagree with the government using public funds to fund the implementation of crypto activities.