El Salvador opposition party sues government over new Bitcoin legislation

The deputy leader of El Salvador’s opposition party has recently filed a lawsuit against the new legislation that makes Bitcoin legal tender in the country.

Bitcoin law to ‘loot people’s pockets’

The Farabundo Marti National Liberation Front (FMNL) deputy leader, Jamie Guevara, has filed a lawsuit to oppose the new Bitcoin law in El Salvador.

Guevara has been backed by a group of Salvadoran citizens who believe that the new Bitcoin legislation is unconstitutional. Together, the joined forces aim to argue against the El Salvador Bitcoin law that would come into effect in the next few months. 

A citizen named Oscar Artero said:

“I bring a lawsuit of unconstitutionality against the decree issued by the Bitcoin Law for being a decree lacking legality, lacking foundation, without considering the significance and harmful effects that such a law will cause to this country.”

Salvadoran President Nayib Bukele brought forward the proposal allowing Bitcoin to become legal tender, which was approved and set into legislation earlier this month. 

Bukele believes that the leading cryptocurrency would help Salvadorans quickly and cost-effectively send remittances back to their home country. He further stated that Bitcoin would allow for more financial inclusivity. 

Artero added:

“The Bitcoin Law is to loot people’s pockets; it is tax-exempt, they want to force us to trade.”

According to a local news outlet, Guevara and his colleagues are not the only ones who disagree with the new Bitcoin law. The Salvadoran Chamber of Commerce survey found that 80% of Salvadorans would not agree to receive payments in the bellwether cryptocurrency.

The strong opposition rides on the back of the country’s long history of significant corruption in public and private Salvadoran life. According to The Economist, El Salvador’s hybrid regime has led Latin American states' decline toward authoritarianism in 2020. 

While citizens remain in fear of further corruption, Transparency International’s Corruption Perceptions Index rated El Salvador’s handling of corruption 36/100 last year.