Several non-governmental organizations (NGOs) that make public life in El Salvador asked the president of that nation, Nayib Bukele, to clarify whether or not it is true that his government administration is planning to create a digital currency that would be called “crypto colon.”
These comments have come after, last weekend, a supposed conversation that the head of state of the Central American nation had held was leaked with his brothers, Ibrahim and Yusef. There they would have addressed the possibility of creating their own stablecoin, as reported by CriptoNoticias.
This fact would have occurred while the project that would later become the Bitcoin Law was being prepared. The possibility was handled as an alternative that would allow having a digital currency that would serve as a reference to the local currency prior to the current dollarization of the economy of that country.
According to the information published by the newspaper El Mundo de El Salvador, today, July 20, 2021, the NGOs headed by the Salvadoran Association Transparency, Social Comptroller and Open Data (Tracoda), whose spokesperson is in charge of its president, Carlos Palomo They said they are opposed to negotiating the country’s economic policy with its back to the people.
For this reason, Palomo pointed out that, in order to safeguard the interests of the population, he believes that it is convenient that the State explain the strategy that would be put into practice and what are the negotiations held on the matter with foreign companies or with consultants.
In your opinion, it is the community which in the end will have to bear the consequences of a possible change in monetary policy. In view of this situation, he accompanied this reflection with the following comment:
The idea is neither bad nor good per se, it is simply a new mechanism. It would be good to clarify what the official role is, because it is not appropriate for people who do not have public responsibilities to be ruling over the state budget or are compromising economic policy measures that will affect citizens, that is the problem.
Carlos Palomo, president of Tracoda.
Palomo also questioned that there is no transparency about the people who are appointed to hold public office or not in El Salvador, inasmuch as the brothers of the president are being involved in these matters of State. In the opinion of the owner of Tracoda, the individuals appointed for this purpose must be under the supervision of the Court of Accounts of the Republic (CCR) or, in such case, subordinate to what is established by both the Government Ethics Law, as well as the courts of justice of the country.
On this point, Wilson Sandoval, coordinator of the Anticorruption Legal Advice Center, chapter of Transparency International in El Salvador of the National Development Foundation (Alac-Funde), who also asked for clarity on what is happening in this regard.
“It should be made transparent, because there are people who are making decisions on behalf of the Salvadoran State and the population does not know anything,” Sandoval said.
Carlos Palomo, president of Tracoda, questioned whether the family of President Bukele is involved in the economic policy debates. Source: Twitter.
In addition, Sandoval also questioned the negotiations that took place to enact the Bitcoin Law. He described them as “unethical”, since he considers that “there is no guarantee that the interests of the population will be answered.”
Several questions to the Bitcoin Law within El Salvador
On June 8, the Legislative Assembly of El Salvador approved the Bitcoin Law with a qualified majority. With this decision, it became the first country to establish BTC as legal tender.
In this document it was established that the exchange rate between bitcoin and the dollar will be set by the free market, being the result of agreement between buyers and sellers of the cryptocurrency.
It is not the first time that the Bitcoin Law has generated discord among groups opposed to the government of President Bukele. In June 2021, the deputies of El Salvador presented a reform aimed at eliminating bitcoin as legal tender, which did not get the endorsement of Congress.
On that occasion, the initiative was led by parliamentarians Anabel Belloso and Dina Argueta, who considered that the adoption of cryptocurrency puts the economic system and family finances in danger.
Some professionals in El Salvador have also called for the repeal of the Bitcoin Law, considering that it does not fulfill the basic functions of money due to its volatility. Despite this opposition, the Government continues with its project.