Legal Challenge Launched Against El Salvador's Bitcoin Law
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Legal Challenge Launched Against El Salvador's Bitcoin Law

1 year ago

One theory doing the rounds is that President Bukele might be indirectly behind this legal challenge.

Legal Challenge Launched Against El Salvador's Bitcoin Law

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A legal challenge is being launched against El Salvador’s Bitcoin Law.

A political party, along with citizens who oppose the plans, allege that President Nayib Bukele’s plans are unconstitutional.

They also claim that the legislation fails to consider “the significance and harmful effects” that would be associated by introducing Bitcoin as legal tender alongside the U.S. dollar.

All eyes now will be on the Constitutional Chamber of the Supreme Court of Justice, which will be tasked with reviewing the lawsuit.

The Spanish language El Mundo newspaper has suggested that President Bukele himself might be behind this legal challenge — so as to ensure that the law can be declared unconstitutional without him having to admit “what was done is improvisation and foolishness.”

Salvador Enrique Anaya, a lawyer, told the media outlet that the Presidential House has “no idea how to implement the Bitcoin Law,” and put forward a theory that they may be looking for a way out.

Falling Apart? 

In other developments, El Salvador’s Chamber of Commerce and Industry has polled consumers and businesspeople about the proposals — and its poll is rather unflattering to say the least.

More than 1,600 people responded to its survey. Some 96.4% of entrepreneurs said they would prefer the use of Bitcoin to be optional rather than mandatory. Just 10.9% believe that embracing cryptocurrency will attract investment into the country.

Meanwhile, 93.2% of consumers said they do not want to receive their salary in Bitcoin, while 82.5% said they would be against receiving remittances in cryptocurrency too.

A lack of understanding about how cryptocurrencies work, and concerns about Bitcoin’s volatility, were listed as the main reasons.

With the law set to come into force in under 90 days, the organization behind the poll warned “informing and educating the population is vital to avoid affecting the country’s economy and households.”

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