The Fault with El Salvador’s BTC Law

Nayib Bukele, the Salvadorian head of state, is a savvy businessman.

In an earlier-recorded video clip that aired during the BTC 2021 Miami conference, Nayib announced plans to make the leading digital asset a legal tender in the nation. After little pushback and minimal negotiations, his proposal became law after four days.

That made El Salvador the first nation to legalize Bitcoin as legal money. However, some industry experts view the move as a PR coup. Keep in mind that the president is already a popular individual in the country, partially due to his unlimited spending protocols. Bukele boosted his global profile remarkably since praising digital gold and his involvement in the crypto undertakings. Different politicians in Latin America are now considering cryptocurrency activities as fintech firms and crypto exchanges add relevant crypto coins that traders need.

However, more might be needed to resolve El Salvador’s diplomatic and economic afflictions. Firstly, the nation faces declined sovereign debt, government corruption, and an inflating discrepancy. For such reasons, the International Monetary Fund and World Bank find El Salvador’s Bitcoin gamble questionably. Instead of solving the problems that Bitcoin mining has to the environment, Bukele seems to consider the nation’s bothersome scope of issues.

Although the move by Nayib Bukele can excite BTC bulls as far as the coin’s value is concerned, crypto fans need to be careful about the president’s legislation. The new law has an article, number 7, that investors should give a second look. The section required economic agents operating in the country to accept Bitcoin payments. Later on, Bukele stated that even fruit sellers need to venture into the crypto world, accepting BTC transactions.

However, the statement contradicts, even if it is legal tender. As much as cryptocurrencies present an alternative fiscal system not interfered with by the government, is there any need for the administration to use force in crypto adoption?

Multiple financial experts seem to be against the move. A Coin Center executive director Jerry Brito tweeted that the law is a disgrace because it forces residents to adopt BTC.

What do you think about El Salvador’s Bitcoin law? Comment below.