The Central American Institute for Fiscal Studies (Icefi) has requested this Wednesday the repeal of the Bitcoin Law in El Salvador due to the “great costs” and the lack of benefits it has for the population.
“One year after the Bitcoin Law came into force , Icefi’s technical analysis shows a negative balance, with great costs for Salvadoran society and without tangible benefits,” the organization said in a statement.
Therefore, the agency “recommends that the Legislative Assembly repeal the Bitcoin Law, and that the use of this cryptocurrency be voluntary.”
The Icefi has recalled that the Legislative Assembly approved 225.3 million dollars for the adoption of bitcoin as legal tender and has pointed out that “it is alarming that, a year later, the details of how these have been handled have not been published. public resources”.
“In a context of high inflation and a loss in the well-being of the population, the use of these resources represents a high opportunity cost, because they could be used to strengthen education, health or social protection, with emphasis on groups most vulnerable”, he underlined.
According to the Institute, the adoption of bitcoin, “added to institutional deterioration, has caused serious difficulties for the Government to access sources to finance the fiscal deficit” and has cited as an example a service agreement extended by 1,300 million with the Fund International Monetary Fund (IMF) that could not be closed.
With the approval and entry into force of the Bitcoin Law, El Salvador became the first country in the world to have it as a currency and a kind of laboratory for crypto assets.
The bets of the Bukele Executive, who did not present any official plan or public policy, were framed in the massive adoption of bitcoin, obtaining profits with the purchase of the cryptocurrency with state funds, attracting investment and saving millions of commissions. for remittances.They recommend repealing the Bitcoin Law in El Salvador due to its “great costs”