Bukele’s Bitcoin Courage Led to Victory in El Salvador Election
in El Salvador, President Nayib Bukele Bold political and economic strategies, including the unprecedented move to make Bitcoin legal tender, have positioned him for a resounding victory in the upcoming presidential election.
Bukele was accused of violating the constitution and running a dictatorial government. But reports show he is on track to be re-elected with an overwhelming 82% majority.
The New York Times highlights controversial aspects of Bukele’s presidency, detailing the large military presence on the streets and the indefinite suspension of basic civil rights. However, voters seem ready to extend his term of office regardless of these concerns.
Markets view IMF discussions positively
Financial markets have reacted positively to the Bukele administration, especially after his recent assurances to investors about El Salvador’s economic direction. Bloomberg reported that El Salvador bonds experienced a significant rise due to Bukele’s commitment to meet his obligations to bondholders and his efforts to negotiate an agreement with the International Monetary Fund (IMF). These moves led to a significant recovery in the country’s public debt; There was a 5.7% increase in bonds maturing in 2052.
Bukele’s fiscal strategies also reportedly led to credit rating upgrades from S&P Global Ratings and Fitch Ratings, although El Salvador continues to be classified in the “junk” category.
Bloomberg highlights that his administration has engaged in bond buybacks, pension debt swaps and refinancing efforts, which have collectively improved El Salvador’s, and thus Bukele’s, market position.
Bukele is in the majority in El Salvador
As Bukele prepares to enter his second term, the vice president recently confirmed to newspapers: Bitcoin will retain its legal tender status.
The policy continues to attract international attention and criticism, including from the IMF. According to Reuters, the IMF has suggested removing cryptocurrency as legal tender in financial support discussions.
But the adoption rate among Salvadorans remains low. Central American University research showed that 88% of the population will not use Bitcoin in 2023. Additionally, only 1% of remittances were made with BTC.
But Bukele’s tenure is a testament to his ability to deal with both the complexities of international finance and the demands of domestic governance; it secures both a strong electoral mandate and a cautiously optimistic outlook from the global financial community.
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Shraddha’s professional journey spans more than five years; During this time, he worked as a financial journalist, providing information about the business world, markets and cryptocurrencies. As a reporter, he placed particular emphasis on learning about market interaction with emerging technologies.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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