Protests in El Salvador After Bitcoin Crashes

Teodora Dobrilova
Teodora Dobrilova

Updated · Feb 21, 2022

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Bitcoin plummets on the first day after El Salvador accepted it as a legal tender, leading to protests.

El Salvador Loses $3 Million

Bitcoin reached its lowest point in around a month, crashing from $52,000 to under $43,000. As a result, El Salvador lost $3 million.

Another problem that no one envisioned was that platforms such as Apple and Huawei weren’t supporting Chivo - the government-backed digital wallet. Consequently, as the servers couldn’t keep up with the traffic, the authorities had to pull them offline.

Later, however, the digital wallet did appear on some platforms. Giants like MacDonald’s and Starbucks accepted bitcoins as payment.

The authorities claimed the move would save El Salvador $400 million. But the BBC took data from the World Bank and the government and calculated that the total amount was closer to $170 million.

Protests in San Salvador

Around 1,000 protestors took the streets of the capital San Salvador. 

Johnny Wright Sol, a politician from the opposition, said: "The majority of the population knows very little about cryptocurrencies. What we do know is it's a very volatile market. Today that was surely made manifest."

According to him, the government approved the law without enough debate. He also thinks that authorities shouldn’t force businesses to accept cryptocurrency as payment.

Sources.

BBC

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Teodora Dobrilova

Teodora Dobrilova

Teodora devoted her whole life to words – reading, writing and trying to be original on social media. She got certified in digital marketing but still feels she’s not cool enough to be an influencer. (We all disagree – she influences the team pretty well.) She finished a master’s degree focused in Literature, Publishing, Mass Media. Her hobbies include traveling, and reading. Teddy hopes that yoga will be the thing to finally teach her some patience and show her the path toward world domination. Maybe modern tech can also help her with that.

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