Bitcoin (BTC) will remain legal tender in El Salvador during the second term of current President Nayib Bukele. There are only a few days left before the elections in El Salvador – they will take place on February 4. The country’s Vice President Felix Ulloa said that after re-election, Bukele will remain committed to the first cryptocurrency. Based on Reuters reports on this topic.
El Salvador: Bitcoin is Here to Stay
According to Ulloa, the International Monetary Fund (IMF) previously asked El Salvador to “reconsider” the country’s monetary policy. Representatives of the organization were concerned about the Central American state’s plans to issue “volcanic” bonds based on BTC worth $1 billion, and also refused to issue a loan.
This is what made politicians emphasize that Bukele is not going to change his Bitcoin strategy. In addition, the Salvadoran authorities were convinced of this by the decision of the US Securities and Exchange Commission (SEC), which on January 10 approved spot ETFs for BTC. “Not only will the law be preserved. At the moment, he has enormous confidence around the world,” Ulloa added.
If Bukele and his party win the election, the El Salvadoran government will move ahead with plans to issue Bitcoin- backed bonds. The majority of relevant polls are now hinting at the re-election of the incumbent president. Ulloa also noted that after the elections, the construction of the tax-free cryptocurrency haven Bitcoin City will also continue.
Citizens of El Salvador are Not Happy with Bitcoin
In September 2021, El Salvador became the first country in the world to make Bitcoin legal tender. However, the country’s population did not accept the first cryptocurrency with such great enthusiasm.
A recent survey conducted by a Salvadoran university found that in 2023, only 12% of the country’s citizens used BTC to pay for goods or services. Compared to the previous year, the figure decreased by almost half – in 2022 it was 24.4%.
Previously, the El Salvador government also teamed up with Tether, the issuer of the USDT stablecoin, to attract more investment into the country. They launched a special visa program that can be obtained by donating $1 million in Bitcoin or USDT to the development of the state.
El Salvador: Attracting Investors with Bitcoins
The government of El Salvador is trying to attract investment in cryptocurrencies, promising foreigners fast-track citizenship for bitcoins. In December, The government of El Salvador voted in favour of immigration reform that would make it easier for those willing to donate bitcoin to help the country gain citizenship. The relevant law will come into force in the coming days. The reform stipulates that those who meet the requirements will be able to skip the naturalization process—five years of permanent residence for anyone from a non-Spanish-speaking country, or two years for those whose husband or wife is a citizen of El Salvador.
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