El Salvador police arrested local cryptocurrency and computer systems expert Mario Gomez without charges yesterday. He had previously been a frequent critic of the country’s government’s Bitcoin adoption strategy. Recall that on September 7, a law comes into effect in El Salvador that makes BTC a legal tender on a par with the national currency – and that’s exactly what the activist doesn’t like. We tell you more about what’s going on.

The recognition of Bitcoin as official tender in the country has already been criticized by the IMF, some major banks of the world and the rating agency Fitch. The main arguments against the acceptance of the cryptocurrency are its too great instability and unpreparedness of the population to switch to cryptotransactions.

According to experts, the daily jumps in the rate of cryptocurrency will be inconvenient for businesses, which will have to depend on what is happening in the coin market. Otherwise, they will be forced to get rid of digital assets immediately, which will require extra effort and time. In the end, the verdict of bankers is unequivocal: recognizing BTC to be as capable as the dollar is too risky for the economy.

El Salvador’s acceptance of Bitcoin

Mario’s mother Elena de Gomez told a local news outlet that she still hasn’t been told the reason for her son’s arrest. Police, however, say that he is suspected of financial fraud. According to Decrypt, a special police unit tried to seize Gomez’s computer, but was prevented from doing so by reporters who quickly arrived on the scene.

After his arrest, the suspect was transferred to the custody of the Crime Investigation Division of the Central Investigative Directorate of the National Civil Police of El Salvador. There he was charged with “sending fake emails to owners of compromised bank accounts.” His computers and phones are being searched for evidence.

According to Gomez’s lawyer Otto Flores, police released the Salvadoran man into custody hours after his arrest. He was released home, but the lawyer does not know what devices were taken from Gomez or whether they will be returned.

Bitcoin, Stablecoins Could Serve as Alternative to Stagnant Financial Markets

Mario Gomez has participated in several forums and video conferences over the past week, talking about the flaws and risks of the country’s Bitcoin adoption strategy. Gomez is also credited with leaking key data about the national cryptocurrency wallet Chivo, which was created by the government to control the dollar-for-bitcoin exchange process. He pointed out several design features of the Chivo wallet that bothered him – including the fact that the wallet’s “zero fees” would actually be paid from citizens’ taxes.

In fact, local publications describe Mario as an inconvenient activist for the authorities, who has been putting sticks in the wheels of officials.

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

It wasn’t me. It’s all your people. The more you try to hide your affairs, the more people will be eager to expose the truth.

We’re probably talking about a leak about a cryptocurrency wallet being developed. For now, though, the police are refusing to comment on the Gomez case and sticking to the official statement about the suspect’s alleged financial fraud. But is this really the case? Local analysts speculate that the case is in opposition to the decision of President Nayib Bukele, who has been publicly advocating for Bitcoin for months. That’s just a guess, though.

Cryptocurrency can be useful not only in El Salvador, but also in Afghanistan – so says the founder of the cryptocurrency Cardano Charles Hoskinson. The day before, he said that the use of digital assets can give financial privacy to Afghans after the takeover of the country by the radical Taliban. Here is his quote quoted by Cointelegraph.

“Digital life in Afghanistan is now under pressure. Citizens’ online statements over the past two decades are being scrutinized by the new regime. Anyone who spoke out against the Taliban will face persecution, imprisonment or even death.

In addition to hiding financial transfers, Bitcoin can also give Afghans a great opportunity to keep their savings from inflation. Given the country’s crisis, the national currency is doomed to depreciate rapidly in the coming years – this is the opinion of most financial analysts. At the moment BTC is almost one of the few means of international payments outside of Afghanistan, because most of the banks and payment systems in the country have stopped their activities.

We believe that Bitcoin should not be considered a universal answer to all possible problems, because the economy of a single country will not revive solely because of the support of digital assets. But cryptocurrency does have the power to retain its value – as well as increase it over the next few months. So it does make sense to get involved with crypto in any environment or country. Especially as long as it remains a relatively new niche.