29.11.2021

Criticism of Bitcoin adoption in El Salvador was arrested by the police. He is suspected of financial fraud

El Salvadorian police yesterday arrested without charge a local cryptocurrency and computer systems specialist, Mario Gomez. Previously, he has often criticized the strategy of Bitcoin adoption by the government of the country.

Recall that on September 7, a law comes into force on the territory of El Salvador, which makes BTC a legal means of payment on a par with the national currency – and this is what the activist does not like.

The recognition of Bitcoin as an official means of payment in the country has already been criticized by the IMF , some major banks in the world and the Fitch rating agency . The main arguments against the adoption of cryptocurrency are its too great instability and the unwillingness of the population to switch to crypto transactions.

According to experts, the daily jumping of the cryptocurrency rate will be inconvenient for business, which will have to depend on what is happening on the coin market. Otherwise, they will be forced to immediately get rid of digital assets, which will require extra effort and time. Ultimately, the bankers’ verdict is unambiguous: to recognize BTC as the same in its capabilities as the dollar is too risky for the economy.

Bitcoin adoption in El Salvador

Mario’s mother, Elena de Gomez, told a local news outlet that she still hadn’t been told the reason for her son’s arrest. At the same time, the police say that he is suspected of financial fraud. According to Decrypt , a special police unit tried to confiscate Gomez’s computer, but did not do this because of the quickly arrived at the scene of the events of journalists.

Following his arrest, the suspect was placed under the supervision of the Crime Investigation Unit of the Central Investigation Directorate of the National Civil Police of El Salvador. There he is charged with “sending fake letters to the owners of compromised bank accounts . ” His computers and phones are being searched for evidence.

According to a statement by Gomez’s lawyer Otto Flores, the police released the Salvadoran into custody several hours after his detention. They let him go home, but the lawyer does not know which devices were seized from Gomez and whether they will be returned.

Over the past week, Mario Gomez took part in several forums and video conferences, talking about the drawbacks and risks of the Bitcoin adoption strategy in the country. Gomez is also credited with leaking key data on the national cryptocurrency wallet Chivo , which was created by the government to control the exchange of dollars for bitcoins. He pointed to several design features of the Chivo wallet that worry him – including the fact that the wallet’s “zero fees” will actually be paid from citizen taxes .

In fact, local publications describe Mario as an inconvenient activist for the authorities, who put a spoke in the wheels of officials.

Naib Bukele Bitcoin

President of El Salvador Nayyib Bukele

A few hours before his arrest, Mario sent an encrypted message to El Salvador’s secret services. Here is its content.

It’s not me. These are all your people. The more you try to hide your affairs, the more people will seek to reveal the truth.

Probably, we are talking here about the leak of information about the developed crypto wallet. However, so far the police have refused to comment on the Gomez case and adhere to the official statement about the alleged financial fraud of the suspect. But is it really so? Local analysts suggest that the case is in opposition to the decision of President Nayib Bukele, who has been publicly supporting Bitcoin for several months. However, this is only an assumption.

The cryptocurrency can come in handy not only in El Salvador, but also in Afghanistan, according to the founder of Cardano cryptocurrency Charles Hoskinson. The day before, he said that the use of digital assets could give financial privacy to Afghans after the seizure of the country by the radical Taliban movement. Here’s a quote from Cointelegraph .

Digital life in Afghanistan is now under pressure. Citizens’ statements on the Internet over the past two decades have been tested by the new regime. Anyone who opposed the Taliban will face persecution, imprisonment or even death.

In addition to hiding financial transfers, Bitcoin can also provide Afghans with a great opportunity to keep their savings from inflation. Against the background of the crisis in the country, the national currency is doomed to rapid depreciation in the coming years – this is the opinion of most financial analysts. At the moment, BTC remains almost one of the few means for international payments outside Afghanistan, since most of the banks and payment systems in the country have ceased their activities.

We believe that Bitcoin should not be considered a universal answer to all possible problems, since the economy of a single country will not revive solely due to the support of digital assets. However, the cryptocurrency is really capable of preserving the value – as well as increasing it over the next few months. Therefore, it really makes sense to contact the crypt in any conditions and countries. Especially while it remains a relatively new niche.

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