Bitcoin-Embracing El Salvador’s President’s Re-Election Statement Slammed – Featured Bitcoin News

Just over a year after overseeing El Salvador’s adoption of bitcoin, the Central American country’s 41-year-old president, Nayib Bukele, recently declared his intention to serve another five-year term. The announcement has been criticized by some who have been quick to remind Bukele that El Salvador’s constitution prohibits presidents from serving consecutively.

Re-election of presidents a common practice in developed countries

El Salvador’s bitcoin-embracing leader, President Nayib Bukele, recently revealed that he plans to serve another five-year term even though the country’s constitution bars presidents from serving consecutive terms. The announcement by Bukele, who is said to enjoy high approval ratings, has been criticized by opponents and critics who accuse him of undermining the country’s democratic institutions.

According to an Al Jazeera report, the 41-year-old leader made the announcement while giving a speech on El Salvador’s independence. In the speech, Bukele said his plan to serve consecutive terms was justified because this practice is also common in developed countries.

“I announce to the Salvadoran people that I have decided to run for president of the republic. Developed countries have re-election. And thanks to the new configuration of the democratic institution in our country, El Salvador will now do it too, said Bukele.

In another report, Bukele is quoted as suggesting that while opposition and opposition to his plans from developed countries may be inevitable, he remains unfazed by this because “it is not for them to decide. The people of El Salvador do.”

But just as Bukele predicted when he made the announcement, critics that include the US government have challenged his threat to override a clause in El Salvador’s constitution, which specifically prohibits presidents from serving consecutive terms. The US-based think tank Atlantic Council has characterized Bukele’s plan as the “last step in his power grab”.

Fitch Ratings downgrades El Salvador’s debt to CC

Meanwhile, the controversy sparked by Bukele’s re-election bid came just days after credit rating agency Fitch Ratings downgraded El Salvador’s debt to CC. According to a Bloomberg report, this assessment means that the Central American sovereign’s debt is seen as riskier than that of war-torn countries such as Ukraine and the Republic of Congo.

Before Fitch Ratings’ latest downgrade, El Salvador also faced widespread criticism over its decision in June 2021 to adopt bitcoin as legal tender. As reported by Bitcoin.com News, institutions including the International Monetary Fund (IMF) have criticized the move, which it said threatens financial stability.

The IMF’s subsequent call for El Salvador to abandon its bitcoin law was rejected by the Bukele government. Instead of giving in to the growing pressure from the IMF and others, the El Salvador government took steps to educate citizens about bitcoin. It also transferred bitcoins to residents using the official wallet application, Chivo.

As the first country to designate bitcoin as legal tender, El Salvador also organized a bitcoin conference where 44 central banks were represented. However, the country’s much talked about bitcoin volcano bonds have yet to materialize. According to a Bitcoin.com News report, El Salvador’s financial authorities have previously blamed the war between Ukraine and Russia for causing the latest postponement of the issuance of the bonds.

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Terence Zimwara

Terence Zimwara is a Zimbabwean award-winning journalist, writer and author. He has written extensively about the economic problems in some African countries, as well as how digital currencies can provide Africans with an escape route.