In a resolute stance amidst ongoing election proceedings, Vice President Felix Ulloa of El Salvador reinforced the nation’s dedication to Bitcoin as legal tender for the duration of President Nayib Bukele’s anticipated second term. Despite urging from the International Monetary Fund (IMF) to reconsider this landmark decision amid loan negotiations, Ulloa affirmed the government’s unwavering support for Bitcoin, citing recent regulatory developments such as the U.S. Securities and Exchange Commission’s approval of Bitcoin-based exchange-traded funds (ETFs) as bolstering confidence in the cryptocurrency.
Ulloa, who is temporarily on leave to pursue re-election alongside Bukele, emphasized that El Salvador’s commitment to Bitcoin remains steadfast, including plans to launch Bitcoin-backed bonds in the first quarter of 2024 and the establishment of “Bitcoin City,” a proposed tax-free zone for cryptocurrency activity in the country’s east. Additionally, initiatives such as granting passports to investors who contribute $1 million equivalent in Bitcoin are set to proceed.
Since becoming the first country to adopt Bitcoin as legal tender in September 2021, El Salvador has faced both praise and criticism for its pioneering move. The IMF, in particular, has voiced concerns, especially amidst negotiations for a $1.3 billion loan, citing challenges related to public debt.
Ulloa, a seasoned lawyer at 72, expressed optimism that hurdles in accessing IMF financing would be overcome, underscoring the nation’s determination to navigate through economic challenges while upholding its embrace of cryptocurrency.
As President Bukele and his New Ideas party are widely expected to secure victory in Sunday’s election, the reaffirmation of El Salvador’s commitment to Bitcoin signals a continued divergence from traditional financial frameworks, positioning the nation at the forefront of the global cryptocurrency landscape.
