24.7 C
New York
Sunday, September 19, 2021

Buy now

Freight transport rejects payment in bitcoin in El Salvador

The Salvadoran Association of International Freight Carriers (ASTIC), requested the Executive and Legislative Branch of its country to modify the obligation set forth in article 7 of the Bitcoin Law or, failing that, exclude the sector from it.

Article 7 of the law establishes that “every economic agent must accept bitcoin as a form of payment when it is offered to him by whoever acquires a good or service”, which ASTIC affirms that it categorically rejects. On September 7, the legislation that converts bitcoin into legal tender comes into force.

«No carrier in Central America that is hired by one inteconomic entity in El Salvador will accept as form of payment bitcoin, creating divisionism in the sector for paying abroad in dollars and the national for being obliged with the cryptocurrency, ”the association said in a statement.

“Our source of income is freight payments from our clients, which, limiting ourselves to receiving bitcoin by obligation, will force us to use this type of currency in Central America, which is unheard of,” added the union.

The Freight is the cost that carriers charge to rent their vehicles and move goods in them. If they do not receive a response to the proposal, the carriers indicated that they could increase the value of the freight by 20 percent.

Related note: El Salvador aims to attract investors with legalization of bitcoin

“The suspension of their services at the Central American level and demand payment of our service in cash from their clients” are other measures they are considering.

The union regretted that the law was approved “Without the corresponding consultations”, measure that would affect them economically. So far in 2021, the sector has also been affected by the rise in fuel prices. Since January, the gallon of diesel in the central zone has increased 28.3 percent, equivalent to 0.70 cents.

Why bitcoin in El Salvador

Since its announcement and approval last June, the law has generated different reactions due to the implications it would have on the Salvadoran economy and the doubts generated by the law about whether or not it will be mandatory for businesses to accept the cryptocurrency.

«This is something that came to stay and the only thing we regret is that it was done from ‘shock’ (improvised) and without the necessary preparation to be able to cultivate the common Salvadoran, the economic and financial system, among others as for the management ”, stated on August 25, 2021, the president of the Salvadoran Association of Industrialists (ASI), Eduardo Cader.

The ASI is not the only one that has spoken out about the decision to adopt the cryptocurrency. Last week, the Chamber of Commerce and Industry of El Salvador (Camarasal) proposed to delay the entry into force of the Bitcoin Law and to have, at least, a period of 60 days for its implementation from the date its regulations were released.

It may interest you: 6 answers you need to know to understand how cryptocurrencies work

* With information from El Economista

Freight transport rejects payment in bitcoin in El Salvador

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

Related Articles


Please enter your comment!
Please enter your name here

Stay Connected


Latest Articles