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El Salvador Becomes First Country To Adopt Bitcoin as Official Legal Tender

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President Nayib Bukele believes the moves will help increase the number of Salvadorans engaging with financial institutions and help increase the amount of money that ends up in family’s pockets from remittances.


First in the World

In a 62-84 vote early Wednesday morning, the Congress of El Salvador voted to recognize Bitcoin as legal tender, making it the first country in the world to do so.

According to the bill, “The purpose of this law is to regulate bitcoin as unrestricted legal tender with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out.”

This means that prices can now be shown in Bitcoin and taxes can be paid with the cryptocurrency. Additionally, exchanges in bitcoin will not be subject to capital gains tax. The country isn’t attempting any price controls with the currency, with the law stating that the exchange rate with the U.S. dollar — El Salvador’s other official currency — “will be freely established by the market.” 

However, there are concerns around Bitcoin’s accessibility. While using digital wallets and currency exchanges aren’t considered complicated once one understands how they work, many rural residents and older individuals don’t have the same level of experience with technology as younger and urban adults. To address this issue, the law also stipulates that the government will “promote the necessary training and mechanisms so that the population can access bitcoin transactions.”

Volatility Possible Liability

The country made the move to include Bitcoin as an official currency in hopes it will increase financial inclusion and banking penetration in the country. Currently, about 70% of the population doesn’t have access to traditional financial services. Beyond hoping citizens would use Bitcoin en-masse, President Nayib Bukele made a deal with the digital wallet company Strike to try and rebuild the country’s financial infrastructure using Bitcoin.

According to Bukele, it will also help with remittances. Salvadorans working abroad sent back nearly $7 billion last year, about 7% of which was lost to financial intermediaries. Bukele believes that sending Bitcoin back will result in lower fees, and therefore more money actually being put into the pockets of Salvadorans.

Still, there are other concerns, especially around Bitcoin’s volatility. In April, the currency reached an all-time high of $64,829, but it has since dropped by nearly half (although looking at a 12-month period, the crypto is still up 230%). In the short term, the crypto is known for jumping up and down over 10% regularly.

It’s unclear how much that volatility will affect the country’s economy, or just how effective the government’s plans to use Bitcoin to draw more citizens into the financial world will be. However, there are concerns about Bitcoin’s limitations. Its biggest liability is its relatively slow transaction rate by being limited to 4.6 transactions per second.

See what others are saying: (Bloomberg) (CNBC) (Reuters)

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Flight Deporting Refugees From U.K. to Rwanda Canceled at Last Hour

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The United Nations High Commissioner for Human Rights said the U.K.’s asylum policy sets a “catastrophic” precedent.


Saved By The Bell

The inaugural flight in the U.K. government’s plan to deport some asylum seekers to Rwanda was canceled about an hour and a half before it was supposed to take off Tuesday evening.

A last-minute legal intervention by the European Court of Human Rights (ECHR) halted the flight. Tuesday’s flight originally included 37 people, but after a string of legal challenges that number dwindled to just seven.

In its ruling for one of the seven passengers, a 54-year-old Iraqi man, the court said he cannot be deported until three weeks after the delivery of the final domestic decision in his ongoing judicial review proceedings.

Another asylum seeker, a 26-year-old Albanian man, told The Guardian he was in a “very bad mental state” and did not want to go to Rwanda, a country he knows nothing about.

“I was exploited by traffickers in Albania for six months,” he said. “They trafficked me to France. I did not know which country I was being taken to.”

A final domestic effort to block the flight in the Court of Appeals failed on Monday. The High Court will make a ruling on the asylum policy next month.

Britains Divided by Controversial Policy

U.K. Home Secretary Priti Patel spoke to lawmakers after the flight was canceled, defending the asylum policy and saying preparations for the next flight will begin immediately.

“We cannot keep on spending nearly £5 million a day on accommodation including that of hotels,” she said. “We cannot accept this intolerable pressure on public services and local communities.”

“It makes us less safe as a nation because those who come here illegally do not have the regularized checks or even the regularized status, and because evil people-smuggling gangs use the proceeds of their ill-gotten gains to fund other appalling crimes that undermine the security of our country,” she continued.

The United Nations High Commissioner for Human Rights, Filippo Grandi, told CBC the policy sets a “catastrophic” precedent.

“We believe that this is all wrong,” he said. “This is all wrong. I mean, saving people from dangerous journeys is great, is absolutely great. But is that the right way to do it? Is that the right, is that the real motivation for this deal to happen? I don’t think so. I think it’s… I don’t know what it is.”

An Iranian asylum seeker in a British detention center who was told to prepare for deportation before being granted a late reprieve was asked by ABC whether he ever thought the U.K. would send him to Africa.

“I thought in the U.K. there were human rights,” he said. “But so far I haven’t seen any evidence.”

The Conservative government’s plan was announced in April, when it said it would resettle some asylum seekers 4,000 miles away in Rwanda, where they can seek permanent refugee status, apply to settle there on other grounds, or seek asylum in a safe third country.

The scheme was meant to deter migrants from illegally smuggling themselves into the country by boat or truck.

Migrants have long made the dangerous journey from Northern France across the English Channel, with over 28,000 entering the U.K. in boats last year, up from around 8,500 the year prior. Dozens of people have died making the trek, including 27 who drowned last November when a single boat capsized.

See what others are saying: (BBC) (The Guardian) (CNN)

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Ryanair Draws Outrage, Accusations of Racism After Making South Africans Take Test in Afrikaans

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Afrikaans, which is only spoken as a first language by around 13% of South Africa, has not been the country’s national language since apartheid came to an end in 1994.


Airline Won’t Explain Discrimination

Ryanair, Europe’s largest airline, has received widespread criticism and accusations of racism after it began requiring South African nationals to complete a test in Afrikaans to prove their passport isn’t fraudulent.

The airline told BBC the new policy was implemented because of “substantially increased cases of fraudulent South African passports being used to enter the U.K.”

Among other questions, the test asks passengers to name South Africa’s president, its capital city, and one national public holiday.

Ryanair has not said why it chose Afrikaans, the Dutch colonial language that many associate with white minority rule, for the test.

There are 11 official languages in South Africa, and Afrikaans ranks third for usage below Zulu and IsiXhosa. Only around 13% of South Africans speak Afrikaans as their first language.

“They’re using this in a manner that is utterly absurd,” Conrad Steenkamp, CEO of the Afrikaans Language Council, told reporters. “Afrikaans, you have roughly 20% of the population of South Africa understand Afrikaans. But the rest don’t, so you’re sitting with roughly 50 million people who do not understand Afrikaans.”

“Ryanair should be careful,” he continued. “Language is a sensitive issue. They may well end up in front of the Human Rights Commission with this.”

Ryanair’s policy only applies to South African passengers flying to the United Kingdom from within Europe, since it does not fly out of South Africa.

The British government has said in a statement that it does not require the test.

Anyone who cannot complete the test will be blocked from traveling and given a refund.

Memories of Apartheid Resurface

“The question requiring a person to name a public holiday is particularly on the nose given that SA has a whole public holiday NEXT WEEK commemorating an historic protest that started in response to language-based discrimination,” one person tweeted.

South African citizen Dinesh Joseph told the BBC that he was “seething” with anger when asked to take the test.

“It was the language of apartheid,” he said, adding that it was a trigger for him.

Officials in the country were also surprised by Ryanair’s decision.

We are taken aback by the decision of this airline because the Department regularly communicates with all airlines to update them on how to validate South African passports, including the look and feel,” South Africa’s Department of Home Affairs said in a statement.

Any airline found to have flown a passenger with a fake passport to the U.K. faces a fine of £2,000 from authorities there. Ryanair has also not said whether it requires similar tests for any other nationalities.

Many people expressed outrage at Ryanair’s policy and some told stories of being declined service because they did not pass the test.

See what others are saying: (The Washington Post) (BBC) (Al Jazeera)

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Leaked Documents and Photos Give Unprecedented Glimpse Inside Xinjiang’s Detention Camps

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The so-called vocational schools, which China claims Uyghurs enter willingly as students, oversee their detainees with watchtowers armed with machine guns and sniper rifles, as well as guards instructed to shoot to kill anyone trying to escape.


Detained for Growing a Beard

The BBC and a consortium of investigative journalists have authenticated and published a massive trove of leaked documents and photographs exposing the Chinese government’s persecution of Uyghur Muslims in unprecedented detail.

According to the outlet, an anonymous source hacked several police computer servers in the northwestern Xinjiang province, then sent what has been dubbed the Xinjiang police files to the scholar Dr. Adrian Zenz, who gave them to reporters.

Among the files are more than 5,000 police photographs of Uyghurs taken between January and July 2018, with accompanying data indicating at least 2,884 of them were detained.

Some of the photos show guards standing nearby with batons.

The youngest Uyghur photographed was 15 at the time of their detention, and the oldest was 73.

One document is a list titled “Relatives of the Detained,” which contains thousands of people placed under suspicion for guilt by association with certain family members. It includes a woman whose son authorities claimed had “strong religious leanings” because he didn’t smoke or drink alcohol. He was jailed for ten years on terrorism charges.

The files also include 452 spreadsheets with information on more than a quarter of a million Uyghurs, some of whom were detained retroactively for offenses committed years or even decades ago.

One man was jailed for ten years in 2017 because he “studied Islamic scripture with his grandmother” for a few days in 2010.

Authorities targeted hundreds more for their mobile phone use, like listening to “illegal lectures” or downloading encrypted apps. Others were punished for not using their phones enough, with “phone has run out of credit” listed as evidence they were trying to evade digital surveillance.

One man’s offense was “growing a beard under the influence of religious extremism.”

The Most Militarized Schools in the World

The files include documents outlining conditions inside Xinjiang’s detention camps, or so-called “Vocational Skills Education and Training Centers.”

Armed guards occupy every part of the facilities, with machine guns and sniper rifles stationed on watchtowers. Police protocols instruct guards to shoot to kill any so-called “students” trying to escape if they fail to stop after a warning shot.

Any apprehended escapees are to be taken away for interrogation while camp management focuses on “stabilizing other students’ thoughts and emotions.”

The BBC used the documents to reconstruct one of the camps, which data shows holds over 3,700 detainees guarded by 366 police officers who oversee them during lessons.

If a “student” must be transferred to another facility, the protocols say, police should blindfold them, handcuff them and shackle their feet.

Dr. Zenz published a peer-reviewed paper on the Xinjiang police files, in which he found that more than 12% of Uyghur adults were detained over 2017 and 2018.

“Scholars have argued that political paranoia is a common feature of atrocity crimes,” he wrote. “Here, it is suggested that the pre-emptive internment of large numbers of ordinary citizens can be explained as a devolution into political paranoia that promotes exaggerated threat perceptions.”

See what others are saying: (BBC) (Newsweek) (The Guardian)

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