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Bitcoin, now legal tender in El Salvador, greeted with tech problems, volatility concerns – CBC.ca

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El Salvador became the first country to adopt bitcoin as legal tender Tuesday, but the rollout stumbled in its first hours and President Nayib Bukele informed that the digital wallet used for transactions was not functioning.

For part of the morning, El Salvador’s president became tech support for a nation stepping into the world of cryptocurrency. Bukele marshaled his Twitter account — with more than 2.8 million followers — to explain that the digital wallet app Chivo had been disconnected while server capacity was increased.

The president said it was a relatively simple problem. “We prefer to correct it before we connect it again,” Bukele said, encouraging his followers to download the app and leave comments about how it was going.

El Salvador’s Legislative Assembly enacted the bitcoin law in June, and the Central American Bank for Economic Integration is providing the government with technical assistance. The law says bitcoin can be used for any transaction and any business with the technological capacity to do so must accept payment in the cryptocurrency.

The government will back bitcoin with a $150 million US fund, and as an incentive, it offered $30 worth of credit to those who use Chivo.

Meanwhile, bitcoin’s value plummeted early Tuesday, dropping from more than $52,000 US per coin to $42,000 US, before recovering about half of that loss — an example of the volatility that worries many.

A digital wallet machine is seen in San Salvador on Tuesday. El Salvador’s rollout of bitcoin as one of its two official currencies Tuesday hit a technical snag when the digital wallet used for transactions had to be disconnected while server capacity was increased. (Salvador Melendez/The Associated Press)

Citizens greet move with curiosity, questions

The government has promised to install 200 Chivo automatic tellers and 50 bitcoin attention centres.

The Associated Press visited one of the automatic tellers in San Salvador’s historic centre, where attendants waited to help citizens, who initially didn’t show much interest.

Asked if he had downloaded the Chivo app, Emanuel Ceballos, said he had not. “I don’t know if I’m going to do it, I still have doubts about using that currency.”

Jose Martin Tenorio said he was interested in bitcoin, but had not downloaded the app either. “I’m running to work. Maybe at home tonight.”

In Santa Tecla, a San Salvador suburb, young attendants were waiting to assist people at a help centre.

Denis Rivera arrived with a friend because they had been trying to download the digital wallet app without success.

He said he didn’t understand why some have been “scandalized” by bitcoin. “We’ve been using debit and credit cards for years and it’s the same, electronic money.”

Rivera said he was in favour of it and planned to use the $30 US offered by the government as an incentive to try it out. “I’m going to see how efficient it is and practical it can be and based on that decide if I keep using it or not.”

A barbershop accepting bitcoin as a payment method is seen in Santa Tecla, El Salvador, on Monday. (Jose Cabezas/Reuters)

Jose Luis Hernandez, who owns a barbershop in the area, came looking for information.

“I have a small business and I want to know how to use the application and how are the rates and all of that,” he said.

Three face-to-face public opinion surveys performed recently showed that most Salvadorans did not agree with the government’s decision to make bitcoin legal currency.

Bitcoin joins the U.S. dollar as the two official currencies of El Salvador 

WATCH | Toronto Stock Exchange launches world’s first bitcoin ETF: 

Toronto Stock Exchange launches world’s first Bitcoin ETF

7 months ago

This week, the Toronto Stock Exchange became the first in the world to launch a Bitcoin exchange-traded fund. We talk to some lucky investors who got in early and look at what’s driving the major surge in Bitcoin’s price. 2:07

Currency’s volatility a worry, critics warn 

Critics have warned that the currency’s lack of transparency could attract increased criminal activity to the country and its wild swings in value could quickly wipe out users’ savings.

David Gerard, author of Attack of the 50 Foot Blockchain, said Tuesday’s volatility likely had little to nothing to do with El Salvador.

“My first guess was shenanigans, because it’s always shenanigans,” Gerard said via email.

Protesters march against the implementation of bitcoin in San Salvador on Tuesday. (Marvin Recinos/AFP via Getty Images)

“Bitcoin basically doesn’t respond to market forces or regulatory announcements,” he said. “That sort of price pattern, where it crashes hugely in minutes then goes back up again, is usually one of the big guys burning the margin traders.”

Because bitcoin is so thinly traded, Gerard said it could also have been a big holder making a large sale to have cash, thus sending the market for a ride.

Bukele has said the cryptocurrency — originally created to operate outside government controlled financial systems — would help attract investment and save Salvadorans money when they transfer earnings in the United States back home to relatives in El Salvador. But its use would be voluntary.

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Carry On Canadian Business. Carry On!

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October 22, 2024

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business to start in Canada

Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

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Imperial to cut prices in NWT community after low river prevented resupply by barges

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October 22, 2024

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NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.

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U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

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October 22, 2024

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TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

The Canadian Press. All rights reserved.

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