- El Salvador has reaffirmed its commitment to cryptocurrencies, declaring that President Nayib Bukele will maintain Bitcoin’s legal tender status during his expected second term.
- As the country heads into elections, the promise of issuing Bitcoin-backed bonds and creating Bitcoin City as a tax-free crypto haven holds significant importance.
- If President Bukele and his New Ideas party achieve an expected victory in the upcoming elections, plans for Bitcoin-backed bonds will continue.
The El Salvador government will maintain its steadfast stance on accepting Bitcoin as a currency: Defying the IMF!
El Salvador’s Strong Commitment to Bitcoin Draws Attention
El Salvador has reaffirmed its commitment to cryptocurrencies, declaring that President Nayib Bukele will maintain Bitcoin’s legal tender status during his expected second term. Despite calls for a review during the International Monetary Fund’s (IMF) credit negotiations, Vice President Felix Ulloa, temporarily in charge for the re-election, emphasized the government’s steadfast stance.
This announcement strengthened El Salvador’s determination following the U.S. Securities and Exchange Commission’s (SEC) approval of Bitcoin ETFs. As the country heads into elections, the promise of issuing Bitcoin-backed bonds and creating Bitcoin City as a tax-free crypto haven holds significant importance.
By continuing its commitment to keeping Bitcoin as a legal tender, El Salvador challenges the call for a review by the International Monetary Fund during credit negotiations, according to Reuters. It is crucial to highlight El Salvador’s unique approach, especially in digital payments.
Meanwhile, Vice President Felix Ulloa emphasized the government’s determination, citing the SEC’s decision to allow U.S.-listed Spot Bitcoin ETFs as a decisive factor in monitoring Bitcoin ETFs. The SEC’s decision to allow U.S.-listed Spot Bitcoin ETFs has further increased confidence in the country’s crypto-focused policies.
Significantly, El Salvador’s vision is not merely about adoption. If President Bukele and his New Ideas party achieve an expected victory in the upcoming elections, plans for Bitcoin-backed bonds will continue. Additionally, plans such as creating Bitcoin City envisioned as a tax-free crypto haven and providing passports to investors investing $1 million in cryptocurrency are expected to continue in the first quarter of 2024.
Digital Payment Vision
In 2021, El Salvador made a groundbreaking move by adopting Bitcoin as a legal tender, deviating from the traditional financial paradigm. This initiative set El Salvador apart as the first country to venture into this unexplored path, aiming to encourage financial inclusion, job creation, and simplify money transfers.
Despite criticism from the IMF, the Salvadoran government under President Bukele’s leadership continues its steadfast stance. Meanwhile, Ulloa, emphasizing the law’s steady status, stated, ‘At this moment, it is the most trusted around the world.’ Ulloa expressed optimism in overcoming barriers to access IMF financing, noting that a significant portion of the package has already been understood, despite concerns about increasing public debt.
