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Cryptocurrency : Petition to repeal the Bitcoin Law without support in the Legislative Assembly of El Salvador

Key facts:

Deputy Portillo Cuadra believes that the Bitcoin Law would make the price of electricity more expensive.

Parliamentarian Johnny Wright asked to change the Labor Code to pay wages in dollars.

The request made to the Legislative Assembly of El Salvador, by the deputies representing the Alianza Nacionalista (Arena) party, to repeal the Bitcoin Law that grants the status of legal tender to cryptocurrency does not have majority support.

The information was published this Wednesday, June 23, 2021 by the El Mundo newspaper of El Salvador. This media reported that the proposal was made through a communication that did not have support in other parliamentarians of the Congress.

The deputy of the Arena party, René Portillo Cuadra, argued that the Bitcoin Law “would make the price of electricity we pay more expensive, it is a law that is causing financial organizations to not be able to lend to El Salvador.”

Upon learning of the position of this parliamentarian on the aforementioned regulations, deputies Numan Salgado and Romeo Auerbach, from the Great Alliance for National Unity (Gana), a party allied with the ruling party, affirmed that your party will not support the repeal of the Bitcoin Law.

Salgado expanded his comment by saying that Arena and the Farabundo Martí National Liberation Front (FMLN) are asking for changes or repeal of the aforementioned law because seek to generate uncertainty and fear in the citizens of El Salvador.

We are seeing that Arena and the FMLN are against the implementation of the Bitcoin Law. We believe that they do it with the sole objective of generating fear in the population, of generating mistrust and that the implementation of this digital currency, then, is not successful. We believe that they are defending the interests of the formal financial sector because they would lose the commissions they receive from all monetary transactions.

Deputy Numan Salgado, representative of the Gana party.

Bitcoin law generates divided opinions among parliamentarians in El Salvador.

Other MPs defend the Bitcoin Law

For his part, Deputy Reinaldo Carballo, from the Christian Democratic Party (PDC), defended the Bitcoin Law, whose regulations are in the process of being drafted and have a 90-day term to present them to public opinion.

Carballo thought that only El Salvador’s financial sector will be affected when this regulation enters into force, next September 7.

“Everybody thinks like we are all economists and this town is going bankrupt, eaten coyol. It will be a virtual currency that is used for transactions, what we are gaining is those commissions that they charge us from the United States to here, that the banks have left for pressing keys. [Por ese motivo] I do not support the (Arena) initiative, ”Carballo said in rejection of the request for repeal of the Bitcoin Law.

Bitcoin law generates controversies among parliamentarians

Deputy Marleni Funes of the FMLN expressed his willingness to study the proposal to repeal the Bitcoin Law. However, he believes that no initiative of the opposition deputies against this regulation will succeed.

Funes added the following sentence: «Both the reform and the repeal will not pass in this Legislative Assembly and I also have my doubts in this Constitutional Chamber, here there is nothing left for the population to organize and say if it is for or against this law”.

The parliamentarian reiterated that she has to get to know Arena’s proposal in depth to decide whether to support repealing the Bitcoin Law.

For his part, deputy Johnny Wright Sol of the Arena party proposed a reform to the Work code. This regulation establishes that they will receive the salary “in legal tender.” From next September 7, the dollar and bitcoin will coexist in El Salvador.

Wright Sol asks, therefore, to reform the Labor Code to expressly establish that wages will be paid in dollars.

However, it will be the The Supreme Court of Justice of El Salvador will be the one that will judge if the Bitcoin Law goes against the Constitution, as reported by CriptoNoticias on June 22, 2021.

Lawyer Óscar Artero, in his capacity as a Salvadoran citizen, sued the legal initiative as unconstitutional approved on June 8, before the Constitutional Chamber of the highest Salvadoran judicial authority.

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