El Salvador's Bitcoin-Friendly President Nayib Bukele Wins Re-Election

CoinDeskPolicyPublished on 2024-02-04Last updated on 2024-02-05

Abstract

Under Bukele, the country in 2021 became the first nation to adopt bitcoin as legal tender.

El Salvador's bitcoin-friendly president Nayib Bukele is on his way to another five-year term, according to exit polls which show him with an overwhelming lead shortly after voting ended on Sunday evening.

The result was widely expected as Bukele, who served since 2019 as president, enjoyed great popularity in the country and led in pre-election polling by a large margin.

Bukele made a splash during his first term cracking down on gang violence with mass incarcerations and betting big on bitcoin (BTC).

In 2021, El Salvador became the first nation to adopt the largest cryptocurrency as legal tender, developed and introduced a crypto wallet Chivo to enhance bitcoin adoption and also started buying the asset as an investment. The move, while widely applauded by bitcoin enthusiasts, drew criticism from international organizations such as the International Monetary Foundation (IMF).

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The country this year plans to issue its long-awaited bitcoin-backed "Volcano bonds" after receiving regulatory approval in December, which would fund a BTC mining industry powered solely by renewable energy.

Edited by Stephen Alpher.

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