El Salvador’s commitment to Bitcoin as legal tender will persist into President Nayib Bukele’s anticipated second term, as confirmed by Vice President Felix Ulloa. In an interview with Reuters, Ulloa outlined the nation’s unwavering stance on Bitcoin, despite the International Monetary Fund’s (IMF) urging to rethink the strategy amidst billion-dollar credit discussions.
The government’s resolve is further solidified by the U.S. Securities and Exchange Commission’s (SEC) approval of spot Bitcoin ETFs, which Ulloa views as a strengthening factor. These ETFs allow investors to partake in Bitcoin without direct ownership, providing a boost to the cryptocurrency’s credibility and market stability.
El Salvador’s Bitcoin City project, a tax-exempt zone for crypto investors, and the policy of offering passports to those investing $1 million in cryptocurrency are set to advance. These initiatives are part of a broader plan to cement the country’s position as a global crypto hub.
Despite the IMF’s criticism of El Salvador’s Bitcoin adoption, the country, which became the first to legalize the cryptocurrency in September 2021, is hopeful about reaching a $1.3 billion credit agreement. Ulloa, a seasoned lawyer, remains optimistic about overcoming the challenges to secure the IMF funding.
El Salvador’s pioneering move to embrace Bitcoin has been met with both support and skepticism, but the nation’s leadership is determined to forge ahead with its crypto-centric economic model, signaling a potential shift in global financial systems.
