A regional deputy belonging to an opposition party in El Salvador and a group of citizens have sued the government over the country's new bitcoin law, calling it unconstitutional.
According to a report on Tuesday by Spain's second-largest newspaper, El Mundo, Jaime Guevara of the Farabundo Marti National Liberation Front (FMNL) has joined a group of citizens to oppose the law.
FMNL is one of the country's two major political parties, and Guevara is the deputy of Morazán, a province in the country's northeast.
Oscar Artero, a citizen plaintiff accompanying Guevara, said the lawsuit was brought because the law signed by President Nayib Bukele failed to consider the harmful effects on his country.
On June 8, the country's legislature passed a law by a supermajority making bitcoin legal tender alongside the U.S. dollar. El Salvador is the first country to make the crypto an official currency.
"The bitcoin law is to loot people's pockets, it is tax-exempt," Artero said during a press conference. "They want to force us to trade."
The case will be heard by the Constitutional Chamber of the Supreme Court of Justice, the country's top judicial branch.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.