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El Salvador will stay committed to bitcoin after election
The Salvadoran PM also announced that their expected Bitcoin Bonds are going to hit the markets in Q1 2024.
El Salvador's Vice President Felix Ulloa speaks during an interview with Reuters in San Salvador, El Salvador, January 31, 2024. REUTERS/Jose Cabezas
Bitcoin is set to remain a lawful form of currency in El Salvador throughout President Nayib Bukele’s second term, according to his vice president, Felix Ulloa.
Despite the International Monetary Fund’s request for reconsideration during loan negotiations, Ulloa reiterated the nation’s commitment to adopting cryptocurrency as legal tender. This decision remains unchanged, with Ulloa pointing to the recent endorsement by the U.S. Securities and Exchange Commission for exchange-traded funds (ETFs) tracking bitcoin as further validation of their stance.
Plans for Bitcoin City
If Bukele and the New Ideas party will secure a victory in Sunday’s election, as most polls anticipate, the Salvadoran government will proceed with its plans to launch bitcoin-backed bonds in the first quarter of 2024, according to Ulloa. The initiatives, including the construction of Bitcoin City, a tax-free cryptocurrency haven in the eastern part of the country, and the issuance of passports to investors contributing the equivalent of $1 million in cryptocurrency, will also move forward.
The first country in the world to use bitcoin as legal tender
El Salvador made history in September 2021 by becoming the first country to recognize bitcoin as legal tender, a move that drew significant criticism, especially from the IMF, with whom the country is currently in talks for a $1.3 billion loan. Ulloa, a 72-year-old lawyer, expressed optimism that challenges in securing IMF financing would be overcome despite a surge in public debt, noting that the majority of the package has already been agreed upon.
