An NGO claims El Salvador’s Bitcoin reserve policy is harming citizens, raising concerns over transparency, poverty, and national financial priorities.
The benefits of BTC are now even more elusive for the average resident of El Salvador due to the changes to its Bitcoin legislation implemented as part of the IMF agreement.
According to Quentin Ehrenmann, general manager of My First Bitcoin, a non-governmental organization (NGO) that is dedicated to Bitcoin adoption, the broader population has been minimally affected by El Salvador’s Bitcoin reserve, and the country’s loan agreement with the International Monetary Fund (IMF) may further complicate its Bitcoin strategy.
Ehrenmann informed Reuters that the IMF agreement’s repeal of the Bitcoin legal tender laws has resulted in a lack of public BTC education or state-led adoption initiatives. He provided the news outlet with a translated statement in which he stated:
“Since the government entered into this contract with the IMF, Bitcoin is no longer legal tender, and we haven’t seen any other effort to educate people. The government, apparently, continues to accumulate Bitcoin, which is beneficial for the government — it’s not directly good for the people.”
The Central American nation also consented to refrain from purchasing additional Bitcoins under the agreement. This information was corroborated by a recent IMF report, which contradicted the assertions of El Salvador’s Bitcoin Office that the nation is amassing Bitcoins daily.
In January, El Salvador’s legislature reduced public sector involvement in Bitcoin to comply with the IMF loan agreement, which sparked a debate regarding the success or failure of the country’s Bitcoin experiment.
This information was obtained from Salvadorans through Cointelegraph.
The Cointelegraph team visited El Salvador in 2023 to gain insight into utilizing Bitcoin by small enterprises and everyday Salvadorans.
Joe Hall utilized IBEX Pay, a payments company that facilitates BTC payments to merchants over the Bitcoin Lightning Network, to pay for his hostel stay with Bitcoin.
The Lightning Network is utilized to transmit Bitcoin in an almost instantaneous manner. It is more appropriate for routine, low-value transactions, such as a cup of coffee or a meal at a restaurant.
The hostel employee who accepted the Bitcoin Lightning payment informed the reporter that it was speedier than using a credit card.
The reporter, however, was compelled to demonstrate to the hostel clerk how to receive a payment over the Lightning Network because a lack of education remained a significant impediment to the widespread adoption of Bitcoin in El Salvador.
