Formal and informal traders point out that the only thing that generates them the digital currency Bitcoin, which will come into force on September 7, is uncertainty and not an expectation of growth.
27A 12 days before the controversial Bitcoin Act comes into force and without its regulations, many business owners refuse to conduct their business transactions with digital currency and the reasons they set out are: there is no further information on its use, much uncertainty has been generated and they fear losses in their trades.
For León Eduardo López, who with his wife Leiby Cerrato, originally from Honduras, are owners of catracho s restaurant, running the business has been a lot of effort and they point out that the use of Bitcoin will pose a risk to their trade.
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“There is a climate of uncertainty, of ignorance, we do not have enough information. We have made the decision not to accept Bitcoin. If circumstances force us to do so, then it will touch, because our business to be trade is exposed to having to accept it, but that doesn’t mean we agree or that we’re going to accept it in a good way, because for us it’s not an opportunity, it’s a risk, ”Leon said.
Leiby Cerrato, a native of Catrachos, prepares some restaurant dishes. PHOTO EDH / Yessia Hompanera
For her part, Clarisa Torres de Ojeda, who owns a boutique and beauty salon, said she is also currently unwilling to use Bitcoin for her transactions even though the law goes into effect on September 7th.
The reason given by Clarissa is for the little formal information available in this regard, as the government did not conduct a campaign to make businesses and consumers clear about what these types of transactions will be like.
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“My sister and I have talked about it and at the moment, as not much is known, nor does anyone want to pay us with Bitcoin, so we decided to wait; it’s to know him, to study him how to handle and to date we don’t know much. We will have to find out well before using it and we need the information campaign for businesses and consumers, “said the boutique owner.
Another case is that of Lorraine Beltrán, who has a business selling typical saucers at the Yucódromo de Mexicans, and has stated that she is not willing to use digital currency.
“I don’t know how to work with this virtual currency and in our business we are not fit to work with it. We in this business have decided not to work with this currency, we do not have time to be connected to the internet; in addition we bought in dollars, in cash and so they pay us and if someone wants to pay us in Bitcoin, then we will hear it but in this business we do not accept this currency, “Lorena said.
Lorena Beltrán, owner of Yuquería Lorena, in Mexicans, warns that if in her business they want to pay her with Bitcoin she will feel very sorry for this customer, but will not sell her of her products. Photo EDH / Yessica Hompanera.
There are stories of entrepreneurs like Rafael Flores, a professional who lost his job but did not stand idly by and started his business, who has stated that he is not willing to lose in Bitcoin what has cost him so much .
“Using Bitcoin would be complicated by the volatility of the currency and the little information we have so far with so much ambiguity and that makes me very distrustful; that’s why I’m not going to accept Bitcoin, I prefer to be paid in dollars.” , Rafael explained.
All of these cases coincide with a poll conducted by the El Salvador Chamber of Commerce and Industry in June, which revealed that 96% of union members disagree on using Bitcoin in their business transactions.
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“96% of entrepreneurs expressed disagreement with the use of Bitcoin, people definitely do not want to be forced to use the currency,” said Carmen Irene Ales, vice president of Camarasal, in this occasion.
The position Guillem Guido, of Unión MIPYME, is similar and has already explained that micro, small and medium-sized enterprises have more doubts than answers regarding the use of digital currency in the country.
“Why is El Salvador with such a small economy going to get into this? Why hasn’t the United States done it? Why hasn’t Europe, China, Singapore done it, which are so advanced and why do we have to do it? ? “, These are some of the doubts that small traders have, according to Guido.
Rafael Flores, creator of his home-based entrepreneurship On Rafa, is wary of Bitcoin. Photo EDH / Yessica Hompanera.
How much will you pay for Bitcoin transactions?
This is another question that traders have.
“Well this is a business and who managed it ?, we don’t know who it is, it’s not a charity company, obviously there will be costs to assume and of course if it’s the state (then) we will all be the ones we use, the ones we do not use, those who are in favor, those who are against we will end up paying these $ 205.3 million, “said León.
Of the $ 205.3 million that the Treasury has requested from the Legislative Assembly for the implementation of Bitcoin in the country, $ 150 million will go to the trust that will be managed by the Development Bank of El Salvador (Bandesal) to finance the conversion of dollars into bitcoins and vice versa; $ 30 million for $ 30 bonus for using the digital government portfolio.
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In addition $ 23.3 million will be for the so-called “cryptofriendly” project, i.e. for Bitcoin kiosks and ATMs; and $ 2 million more will be for Siget (General Superintendency of Electricity and Telecommunications) to acquire technology.
Reasons not to use bitcoin
What do you think of the volatility of bitcoin?
This question was asked to merchants who agreed to explain why they would not use digital currency and most of the arguments were that it generates uncertainty for them, as if they work with payments within seven days, for example, they do not know how much they will pay: if what they are worth when they brought them the product or its value on the day of payment. Nor do they see that when it comes to withdrawing cash in dollars, if the value of Bitcoin has fallen, this will generate losses in their business.
Do you know how to record Bitcoin transactions in your ledgers?
The formal business owners who were consulted said they do not know at all what this record will be like and added that as long as there is no regulation they do not know how it will work, how it will be detailed in the ledgers, how it will be will detail in a bank account and also do not know whether to keep record of the value of Bitcoin on the day of sale or of the value on the day of collection.
Do you think using bitcoin is an opportunity to grow your business?
Four out of five people interviewed said no, because it would be like gambling and they could lose their money. They also added that they know traders who cannot even read or write and will be less able to make transactions with digital currency. A fifth person said it could be an opportunity, but already when everyone knows exactly what it is and how it works.