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Here’s What Nayib Bukele’s Re-election As El Salvador President Means for Bitcoin Investors – Crypto News

Published

1 year ago

February 5, 2024

Dripp

On Sunday, February 4, El Salvador President Nayib Bukele confirmed his victory of re-election thereby securing a staggering 85% vote. As Bukele is set to take charge of another five-year term, Bitcoin investors would be eagerly waiting for him to unveil his next big plans.

Doubling Down On Bitcoin Bets

President Nayib Bukele of El Salvador has officially announced what he claims to be a historic victory in the presidential election. According to Bukele, the preliminary results indicate an overwhelming win with more than 85% of the votes.

Additionally, the president asserts that his party has secured a minimum of 58 out of 60 seats in the Assembly. If the figures hold true, Bukele suggests that this achievement sets a new record in the entire democratic history of the world.

El Salvador has reiterated its commitment to cryptocurrency, confirming that Bitcoin will retain its legal tender status throughout President Nayib Bukele’s expected second term. Despite the International Monetary Fund’s (IMF) suggestion to reconsider this stance during loan negotiations, Vice President Felix Ulloa remains steadfast.

Furthermore, this declaration aligns with the recent approval by the U.S. Securities and Exchange Commission (SEC) of Bitcoin ETFs. Additionally, there are impending plans for the launch of Bitcoin-backed bonds and the establishment of a tax-free cryptocurrency haven known as Bitcoin City

As per the data from Nayibtracker.com, El Salvador holds 2,825 Bitcoin in their treasury worth a staggering $120.6 million. As the Bitcoin price trades at the $42,799 level, the country is sitting on minor profits for now. Nayib Bukele has affirmed that they will continue to accumulate Bitcoin throughout his second term.

El Salvador’s President Nayib Bukele Garners Credit Rating Upgrades

President Nayib Bukele of El Salvador has reportedly achieved credit rating upgrades from S&P Global Ratings and Fitch Ratings, despite the country maintaining its classification in the “junk” category. Bukele’s financial strategies, including bond buybacks, a pension debt exchange, and refinancing initiatives, have played a crucial role in elevating El Salvador’s market standing.

Bloomberg highlights that these financial maneuvers executed by Bukele’s administration have collectively contributed to the country’s improved credit ratings, demonstrating a positive impact on both El Salvador’s financial status and President Nayib Bukele’s leadership.

Nayib Bukele’s tenure has become a testament to his adeptness in navigating the intricacies of international finance and fulfilling the responsibilities of domestic governance. The combination of a strong electoral mandate and a cautiously optimistic outlook from the global financial community reflects the success of Bukele’s approach to economic governance.

In December 2023, El Salvador also unveiled its own Bitcoin-based Freedom Visa and Citizen program. The country’s success could encourage other Latin American nations like Argentina to join the bandwagon.