The lofty ambitions of El Salvador to boost Bitcoin adoption might be shattered if the country’s courts rule that President Bukele’s Bitcoin bill is illegal.
The Farabundo Mart National Liberation Front (FMLN), a coalition of people and political parties in El Salvador, has filed a lawsuit alleging that President Bukele’s Bitcoin adoption plan is illegal.
According to a rough translation from local media outlet El Mundo, the move was led by FMLN legislator Jaime Guevara, who was joined by citizens such as plaintiff scar Artero, who described 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 Guevara, the complaint would put the newly appointed magistrates of the Supreme Court of Justice’s Constitutional Chamber to the test.
With over 7% of the vote in February’s parliamentary election, the FMLN finished third, 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 he believes the parliamentarians may have even started the case internally.
Guevara claimed that the Bitcoin law is “widely reported” to further President Nayib Bukele’s and his New Ideas (Nuevas Ideas) Party’s goal at the expense of the public good, defining the case as “just representing the people.”
More than eight out of ten Salvadorans would not accept to receive wages and salaries in Bitcoin, according to a poll done by the Chamber of Commerce and Industry of El Salvador between June 11 and 15. 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 as a form of payment for salaries.
The World Bank has already expressed opposition to the country’s Bitcoin adoption plan, citing “environmental and transparency issues” linked with the digital commodity.
According to Cointelegraph, even if the Bitcoin law remains in place, because of its scaling limits, there are still numerous barriers to widespread adoption by a whole nation.
Bitcoin prices have fallen 7% during the previous 24 hours to $32,800 at the time of writing.