El Salvador Becomes First Country To Adopt Bitcoin as Official Legal Tender
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)
95-Year-Old Woman Dies After Police Tases Her in Nursing Home
The officer involved was suspended with pay and charged with assault.
A 95-year-old Australian woman whom police tasered in a nursing home last week has reportedly died from her injuries.
Clare Nowland, who had dementia and required a walking frame to stand up and move, was living at the Yallambee Lodge in Cooma in southeastern Australia.
At about 4:15 a.m. on May 17, police and paramedics responded to a report of a woman standing outside her room with a steak knife.
They encountered Nowland, then reportedly tried to negotiate with her for several minutes, but she didn’t drop the knife.
The five-foot-two, 95-pound woman walked toward the two officers “at a slow pace,” police said at a news conference, so one of them tasered her.
She fell to the floor and reportedly suffered a fractured skull and a severe brain bleed, causing her to be hospitalized in critical condition.
Nowland passed away in a hospital surrounded by her family, the New South Wales police confirmed in a statement today.
After a week-long investigation, the police force also said that the senior constable involved would appear in court next week to face charges of recklessly causing grievous bodily harm, assault occasioning actual bodily harm, and common assault.
NSW police procedure states that tasers should not be used against elderly or disabled people absent exceptional circumstances.
Following the incident, community members, activists, and disability rights advocates expressed bewilderment and anger at what they called an unnecessary use of force, and some are now questioning why law enforcement took so long to prosecute the officer involved.
See what others are saying: (Reuters) (The New York Times) (CNN)
U.K. Police Face Backlash After Arresting Anti-Monarchy Protesters
London Mayor Sadiq Khan said that some of the arrests “raise questions” and “investigations are ongoing.”
The Public Order Act
A controversial protest crackdown law in the U.K. is facing criticism after dozens of anti-monarchy protesters were arrested during the coronation ceremony in London over the weekend.
The law, dubbed the “Public Order Act” was passed roughly a week ahead of the coronation for King Charles III. It gives police more power to restrict protesters and limits the tactics protesters can use in public spaces. It was condemned by human rights groups upon its passing, and is facing a new round of heat after 52 people were arrested over coronation protests on Saturday.
In a statement, the Metropolitan Police said protesters were arrested for public order offenses, breach of the peace and conspiracy to cause a public nuisance. The group said it gave advance warning that its “tolerance for any disruption, whether through protest or otherwise, will be low and that we would deal robustly with anyone intent on undermining the celebration.”
It is currently unclear how many of those arrested were detained specifically for violating the Public Order Act, however, some of those arrested believe the new law was used against them.
“Make no mistake. There is no longer a right to peaceful protest in the UK,” Graham Smith, the CEO of anti-monarchy group Republic tweeted after getting arrested. “I have been told many times the monarch is there to defend our freedoms. Now our freedoms are under attack in his name.”
An Attempt to “Diminish” Protests
During a BBC Radio interview, Smith also said he believes the dozens of arrests were premeditated.
“There was nothing that we did do that could possibly justify even being detained and arrested and held,” Smith claimed.
“The whole thing was a deliberate attempt to disrupt and diminish our protest.”
Yasmine Ahmed, the U.K. Director of Human Rights Watch, also tweeted that the arrests were “disgraceful.”
“These are scenes you’d expect to see in Russia not the UK,” she wrote.
When asked about the controversy, Prime Minister Rishi Sunak told reporters officers should do “what they think is best” in an apparent show of support for the Metropolitan Police.
For his part, London Mayor Sadiq Khan said he is looking into the matter.
“Some of the arrests made by police as part of the Coronation event raise questions and whilst investigations are ongoing, I’ve sought urgent clarity from Met leaders on the action taken,” Khan tweeted.
See what others are saying: (The Guardian) (CNN) (The Washington Post)
Foreign Nationals Make Mad Dash out of Sudan as Conflict Rages
The conflict’s death toll has surpassed 420, with nearly 4,000 people wounded.
As the 10-day-long power struggle between rival generals tore Sudan apart, foreign governments with citizens in the country scrambled to evacuate them over the weekend.
On Sunday, U.S. special forces landed in the capital Khartoum and carried out nearly 100 American diplomats along with their families and some foreign nationals on helicopters.
An estimated 16,000 Americans, however, remain in the country and U.S. officials said in a statement that a broader evacuation mission would be too dangerous.
Christopher Maier, the assistant secretary of defense for special operations and low-intensity warfare, said in a statement that the Pentagon may assist U.S. citizens find safe routes out of Sudan.
“[The Defense Department] is at present considering actions that may include use of intelligence, surveillance and reconnaissance capabilities to be able to observe routes and detect threats,” he said.
Germany and France also reportedly pulled around 700 people out of the country.
More countries followed with similar efforts, including the United Kingdom, Italy, Spain, the Netherlands, Canada, China, Saudi Arabia, Lebanon, and Indonesia.
Yesterday, a convoy carrying some 700 United Nations, NGO, and embassy staff drove to Port Sudan, a popular extraction point now that the airport in Khartoum has closed due to fighting.
Reports of gunmen prowling the capital streets and robbing people trying to escape, as well as looters breaking into abandoned homes and shops, have persuaded most residents to stay indoors.
Heavy gunfire, airstrikes, and artillery shelling have terrorized the city despite several proposed ceasefires.
Over the weekend, the reported death toll topped 420, with nearly 4,000 people injured, though both numbers are likely to be undercounted.