As El Salvador approaches its upcoming elections, Vice President Félix Ulloa expresses confidence that the country will maintain its commitment to Bitcoin if his party is re-elected. Ulloa, currently on temporary leave to seek re-election alongside President Nayib Bukele, reaffirms his support for El Salvador's adoption of Bitcoin as legal tender. Reuters reported on February 1 that Ulloa has dismissed the International Monetary Fund's (IMF) request to reconsider El Salvador's Bitcoin policy during negotiations for a $1.3 billion loan.
Ulloa emphasizes that the Salvadoran government has no plans to change its decision, and he remains optimistic about Bitcoin's credibility globally. He notes that the recent launch of a spot Bitcoin exchange-traded fund (ETF) in the United States in early January 2024 will further boost enthusiasm for the cryptocurrency. Ulloa mentions ongoing initiatives, such as the creation of a tax-free Bitcoin City in El Salvador and the offer of passports to investors with $1 million in Bitcoin, which will continue.
El Salvador is set to hold a general election on February 4, 2024, to elect the president, vice president, and all 60 representatives of the Legislative Assembly. Despite facing criticism, President Nayib Bukele is seen as a strong contender for a second five-year term, with reports suggesting substantial voter support for his re-election bid, estimated at 69.9 percent. This contrasts with the previous limitation of El Salvadoran presidents to a single term before Bukele's tenure.
In September 2021, El Salvador made history by becoming the first country to establish Bitcoin as legal tender, a move that drew significant global criticism from financial regulators. A local survey by the Central American University Public Opinion Institute indicated that 70 percent of Salvadorans were reluctant to embrace Bitcoin as legal tender.
Bitfinex Securities, the tokenized securities trading platform of the Bitfinex exchange, recently announced its official launch in El Salvador on January 31. Jesse Knutson, head of securities operations at Bitfinex, commented on El Salvador's financial performance in 2021, citing its surpassing of regional peers and expectations, attributed in part to Bitcoin-driven investment and support from the country's tourism industry.
