Bitcoin (BTC)

El Salvador: Country will not pay wages in Bitcoin

Minister of Labor denies rumours country is set to pay wages in Bitcoin.

The Minister of Labor and Social Welfare of El Salvador Rolando Castro has denied earlier claims making rounds in the media that country is making plans to stay paying salary in BTC.

The Minister took to Twitter on Wednesday to refute the claims, saying that his ministry has not discussed with the Ministry of Finance and the Ministry of Economy of the country to analyse the possibility of Bitcoin-based salaries.

He also added that his office could not make monetary decisions. “Monetary issues fall under the economic cabinet, and I’m not part of it,” he said.

Castro went further to clear the misconceptions by stating that he was just answering a question and that it would be too hasty to start looking into wages.

Local radio Fuego GMV had earlier reported that the government of El Salvador has started to address the issue of wages and the use of Bitcoin. It claimed that Labor Minister Rolando Castro explained that his ministry was trying to determine” whether companies should pay their employees’ salaries via virtual currency. “

The Ministry of the Economy and the Ministry of Finance will work together to determine whether this is possible and desirable. The monetary law of 2001 had allowed the country to adopt the dollar in addition to the official currency colon in order to fight against inflation.

However, it is interesting to note that El Salvador is a pro-Bitcoin country, following the recent adoption of crypto as a legal tender by the country’s parliament. This made the country the first to achieve this milestone.

Mixed reactions have since trailed the update. While the crypto community accepted the development with an ovation, the news has angered some people.

One of those displeased with the move is Professor of applied economics at Johns Hopkins University Steve Hanke.

Hanke said that El Salvador’s recent decision to legalise Bitcoin as a legal tender would completely collapse El Salvador’s economy.’

While responding to questions in an interview on Kitco News on Tuesday described the decision of the parliament of El Salvador as “an economic stupidity.”

The current price of bitcoin is $39,226.93, dropping by 2.16% in the last 24 hours. Bitcoin has a current market cap of $734.95B and a market volume of $34.17B.

Not Investment Advice Note: Views expressed are those of the writer. The author does not own any stocks mentioned. The article is information, not advice. Share prices can rise and fall. Past returns are not a guide to the future. Please do your own research.

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