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El Salvador’s political party has filed a lawsuit saying that President Bukele’s new Bitcoin law is unconstitutional and damaging to the country.
El Salvador’s lofty ambitions to boost Bitcoin adoption may be derailed if President Bukele’s Bitcoin bill is found to be unlawful in the country’s courts.
A group of people affiliated with the Farabundo Mart National Liberation Front (FMLN) has filed a lawsuit alleging that President Bukele’s Bitcoin adoption campaign is illegal.
FMLN legislator, Jaime Guevara, led the move along with citizens including plaintiff Óscar Artero, who characterize the country’s Bitcoin law as “lacking in legality, foundation, and did not consider the significance and harmful effects that such a law will cause to the country,” according to a rough translation from local media outlet El Mundo.
Guevara added that the case will put the newly appointed magistrates of the Supreme Court of Justice’s Constitutional Chamber to the test.
The FMLN finished third in the parliamentary election in February with roughly 7% of the vote, while Bukele’s New Ideas took a commanding lead with two-thirds of the vote. The Nationalist Republican Alliance, which came in second, received approximately 8% of the vote.
Enrique Anaya, a Salvadorian lawyer, stated that the Presidential House was unclear on how to execute the Bitcoin Law, which was adopted on June 9, and that the parliamentarians may have even launched the case internally.
Guevara claimed that the Bitcoin law is “widely rumoured” to further the objectives of President Nayib Bukele and his New Ideas (Nuevas Ideas) Party at the cost of the public interest, defining the action as “merely representing the people.”
According to a study of 1,600 Salvadorans done by the Chamber of Commerce and Industry of El Salvador between June 11 and 15, more than eight out of ten Salvadorans would refuse to accept payments and wages in Bitcoin. El Salvador’s Minister of Labor and Social Welfare, Rolando Castro, stated on June 16 that the government is not yet ready to accept Bitcoin for wage payments.
The World Bank has already objected to the country’s Bitcoin adoption plan, citing “the environmental and transparency shortcomings” linked with the digital commodity.
According to Cointelegraph, even if the Bitcoin law remains in place, there are still numerous barriers to widespread adoption by a full nation owing to the cryptocurrency’s scaling limits.
Bitcoin prices have fallen 7% in the previous 24 hours to $32,800 at the time of writing.