Salvadoran residents took to the streets to protest the legalization of the country\’s first cryptocurrency, according to Euronews.
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Hundreds of demonstrators gathered in the capital San Salvador. They worry about a potential rise in corruption tied to the use of cryptocurrency and the replacement of the US dollar with Bitcoin.
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The Salvadoran Association of International Freight Carriers urged an amendment to the bill, removing the requirement to accept the digital gold as a form of payment. Otherwise, industry representatives said they would suspend services.
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— ASTIC (@Astic_SV) August 26, 2021
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“No Central American carrier that has contracted with an economic entity in El Salvador will accept Bitcoin as a form of payment, creating a divide between foreign and local actors in the sector,” the association said.
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The Salvadoran branch of the fast-food chain KFC backed Bitcoin legalization in the country and President Nayib Bukele.
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¡Por supuesto Sr. Presidente! Los biscuits recién horneados van en camino para usted y el equipo #Bitcoin. #SíAlBiscuit
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— KFC El Salvador (@KFC_sv) August 30, 2021
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In early June, the Salvadoran Legislative Assembly passed a bill recognizing Bitcoin as an official means of payment in the country.
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On September 7, the document will take effect. By then, 200 ATMs will be installed in El Salvador with the option to convert the digital gold.
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A July poll showed that only 20% of the country\’s residents approved of the Bitcoin legalization initiative.
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As ForkLog reported, experts said that the precedent created by El Salvador could just as easily attract investment as drive capital outflows.
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The World Bank refused to assist the country with implementing the first cryptocurrency, while the IMF noted the risks of such a legalization.
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