Opposition poses constitutional challenge to El Salvador’s Bitcoin law

Opposition poses constitutional challenge to El Salvador's Bitcoin law

El Salvador’s grand plans to promote Bitcoin adoption could be turned on their head if President Bukele’s Bitcoin law is proven to be unconstitutional in the country’s courts.

A group of citizens joining forces with political party, Farabundo Martí National Liberation Front (FMLN), has filed a lawsuit claiming President Bukele’s Bitcoin adoption program is unconstitutional.

FMLN legislator, Jaime Guevara, led the move along with citizens including plaintiff Óscar Artero, who characterize the country’s Bitcoin law as “lacking in legality, foundation, and did not consider the significance and harmful effects that such a law will cause to the country,” according to a rough translation from local media outlet El Mundo.

Guevara stated the complaint will test the newly appointed magistrates of the Constitutional Chamber of the Supreme Court of Justice.


The FMLN came third in February’s legislative election with nearly 7% of the vote, while Bukele’s New Ideas established a dominant lead with two-thirds of votes. Second-placed Nationalist Republican Alliance secured nearly 8%.

Salvadorian lawyer, Enrique Anaya, commented that the Presidential House was not clear on how to implement the Bitcoin Law, which was approved on June 9, and suspects that the lawmakers may have even initiated the lawsuit internally.

Guevara stated it is “widely rumored” the Bitcoin law advances the agenda of President Nayib Bukele and his New Ideas (Nuevas Ideas) Party at the expense of the public interest, stating, describing the lawsuit as “simply representing the people”.

A survey of 1,600 individuals conducted by the Chamber of Commerce and Industry of El Salvador between June 11 and 15 indicated that more than eight out of ten Salvadorans would not agree to receive payments and salaries in Bitcoin. On June 16, El Salvador’s Minister of Labor and Social Welfare, Rolando Castro, said the country is not yet ready to adopt Bitcoin for salary payments.

Related: Steve Hanke warns BTC could ‘completely collapse the economy’ of El Salvador

The Bitcoin adoption plan has already experienced pushback from the World Bank, which refused to assist the country in its transition, citing “the environmental and transparency shortcomings” associated with the digital asset.

As reported by Cointelegraph, even if the Bitcoin law remains in place, there are still many hurdles to mainstream adoption by an entire nation due to its scaling limitations.

At the time of writing, Bitcoin prices had slumped 7% over the past 24 hours to trade at $32,800.

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