Fearing trouble in the upcoming elections, politicians in El Salvador are calling for reforms to the Bitcoin law to include clear rules for this particular situation.
In September 2021, Bitcoin became legal tender in El Salvador, despite criticism of the project. In this way, BTC becomes a legitimate medium of exchange that can be accepted by the country's population as a means of payment for products and services.
The Salvadoran government's arrival in space comes on the heels of a campaign by El Zonte, the country's pioneer in accepting bitcoin as a currency. Even so, these rules have helped the entire region understand the technology and learn more about it.
Even with the widespread adoption of Bitcoin, many doubts about the currency remain.
Worried About Elections, Salvadoran Politicians Call for Reform of Bitcoin Law
Bitcoin has sparked a real revolution in El Salvador, where tourism has grown by 30% since Congress passed a law approving the digital currency.
In addition, new businesses backed by the digital currency have emerged, such as ChivoPets Veterinary Hospital, which opened last weekend and will offer discounts for people who pay with bitcoin.
From morning to 7:00am, @chivopets will be working hard to provide our furry animals with the quality they deserve. 🐾Haz tu quote en: https://t.co/LagyFriR36 🐈🐶 pic.twitter.com/9diWOCYwqm
What the Bitcoin law does not make clear, however, is the electoral situation in El Salvador, where the country's leading politicians are now calling for its reform to include rules for the industry. The concern is that the use of bitcoin without oversight could lead to money laundering or even financing with funds from illegal sources.
According to El Mundo, many politicians have made it clear that they should not accept bitcoin donations because they are afraid of falling into a corrupt situation.
Fear of using dollars too
While some politicians are concerned that bitcoin could be used to fund criminal acts in elections, they have also made it clear that they fear accepting dollar donations due to corruption.
In other words, legislators are looking for an overhaul of the Salvadoran system, not just the Bitcoin law. Therefore, the Law on Parties and Anti-Money Laundering and Other Assets should also be the law to be reformed to fit the best practices of the country to actually fight financial crimes.
It is worth remembering that in Brazil, it is forbidden to accept cryptocurrencies as donations in elections, and TSE oversees this situation, which could lead to problems if candidates are caught. But using blockchain to make received donations transparent is not a prohibited practice in the country, as it provides more security to the process.