Nayib Bukele Re-elected as President of El Salvador: What Will Be the Country’s Bitcoin Policy?

• El Salvador President Nayib Bukele officially announced a successful reelection, securing an impressive 85% of the votes, placing him in the first position.
• According to Nayibtracker data, El Salvador holds 2,825 Bitcoins in its treasury, representing a staggering value of $120.6 million.
• El Salvador President Nayib Bukele is reported to have achieved credit rating upgrades from S&P Global Ratings and Fitch Ratings.

Nayib Bukele was re-elected as president in the El Salvador elections: What will El Salvador’s Bitcoin policy be?

Bukele Re-elected, What’s El Salvador’s Bitcoin Policy?

On February 4, El Salvador President Nayib Bukele officially announced a successful reelection, securing an impressive 85% of the votes, placing him in the first position. While Bukele is expected to lead for another five-year term, investors in Bitcoin eagerly await his announcement of significant plans for the cryptocurrency’s future.

El Salvador President Nayib Bukele claimed a historic victory in the presidential election, officially declaring that preliminary results indicate an overwhelming victory with over 85% of the votes. Additionally, the president claims that his party secured at least 58 out of 60 seats in the Assembly. If the numbers are accurate, Bukele says this achievement marks a new record in the democratic history of all nations worldwide.

Despite the International Monetary Fund’s (IMF) suggestion to review El Salvador’s legal tender status for Bitcoin during credit negotiations, President Nayib Bukele confirmed his commitment to cryptocurrency in his expected second term. Vice President Felix Ulloa also remains steadfast in this commitment.

This announcement comes after the U.S. Securities and Exchange Commission’s (SEC) approval of Bitcoin ETFs. Additionally, pending plans include the establishment of Bitcoin-backed bonds and the creation of Bitcoin City, a tax-free cryptocurrency haven.

According to Nayibtracker data, El Salvador holds 2,825 Bitcoins in its treasury, representing a staggering value of $120.6 million. With the current Bitcoin price at $43,150, the country is currently enjoying modest gains. Nayib Bukele stated that they will continue accumulating Bitcoin in his second term.

Nayib Bukele Garners Credit Rating Upgrades

El Salvador President Nayib Bukele is reported to have achieved credit rating upgrades from S&P Global Ratings and Fitch Ratings, despite the country’s classification in the “junk” category. Bukele’s financial strategies, including bond buybacks, retirement debt swaps, and refinancing initiatives, played a critical role in elevating El Salvador’s market status.

Bloomberg highlights that the financial maneuvers executed by Bukele’s administration have positively impacted El Salvador’s financial situation and the leadership of President Nayib Bukele, contributing to the country’s improved credit ratings despite being classified as junk.

Nayib Bukele’s tenure has become an example reflecting his skills in successfully navigating the complexities of international finance and fulfilling responsibilities in domestic policy management. With a strong electoral mandate and cautiously optimistic views from the global financial community, Bukele’s approach to economic management reflects success.

El Salvador also announced its Bitcoin-based Freedom Visa and Citizen program in December 2023. The success of the country may encourage other Latin American nations, particularly those like Argentina, to join this movement.