In June 2021, ElSalvador became the first country to create cryptocurrencies Bitcoin BTC/USD legal tender. The move was backed by the state President Nayib Bukelea vocal bitcoin bull.
Here’s the latest on Bukele and Bitcoin’s performance since the landmark event.
What happened: Bukele is seeking re-election as President of El Salvador, according to a report by Reuters. The current presidential term ends in 2024.
El Salvador was once one of the countries that banned leaders from serving consecutive terms. The country’s Supreme Court reversed that ruling in September 2021.
“Developed countries have re-elections, and thanks to the new configuration of our country’s democratic institution, this will now be the case in El Salvador,” Bukele said in a speech on Thursday.
El Salvador bought bitcoin as part of legal tender support and doubled with multiple purchases in 2022, including in January and June.
The International Monetary Fund has spoken and criticized the move to make bitcoin legal tender.
Rating agency Fitch downgraded the country’s debt rating from CCC to CC as it holds more Bitcoin and has “strained financial and external liquidity positions.”
“Contrary to what the media has been saying all along, El Salvador has the liquidity not only to pay all of its obligations as they come due, but also to pre-purchase all of its own debt through 2025,” Bukele said of potential debt issues for the country.
El Salvador needs to finance $3.7 billion between September 2022 and January 2023.
Fitch said there is a “probability of default.” Bukele claimed there was “no risk of default” for the country.
Despite the crypto bear market and falling bitcoin price, El Salvadorans have shown strong support for Bukele.
In July Bukele would have an 86% approval rating in a Gallup poll. El Salvador’s president has maintained approval ratings of over 75% since taking office…
