El Salvador’s pro-Bitcoin president Nayib Bukele announces re-election bid

by · September 16, 2022

In a live streaming event on Independence Day on September 15, El Salvador’s President Nayib Bukele announced his bid for re-election after his current term ends in 2024.

Bukele’s announcement comes even though former presidents of El Salvador were barred by law from serving consecutive terms. The President highlighted that:

“Developed countries have re-elections, and thanks to the new configuration of the democratic institution in our country, now El Salvador will too.”

Overall, Bukele is showing signs of solid support, as a CID Gallup poll conducted last month revealed an 85% approval rating of his presidency and 95% approval of his governance on security issues.

However, in light of the announcement, El Salvadorians took to the streets in protest. Thousands of protesters pushed back against Bukele’s corruption and integration of Bitcoin, among other issues found objectionable during his presidency.

During his presidency, Bukele introduced Bitcoin as legal tender in the country back in September 2021. The introduction of the largest cryptocurrency in the country recently hit its one-year anniversary, after a year of steady price declines.

Despite introducing Bitcoin-centric educational programs such as “Mi Primera Bitcoin” – my first bitcoin – and setting an example for neighboring countries such as Columbia and Venezuela, the local population is not as keen on crypto as expected.

Related: El Salvador ‘has not had any losses’ due to Bitcoin price plunge, says finance minister

A national survey from February of this year showed that 20% of the population actively used Chivo Wallet, El Salvador’s crypto wallet of choice, for Bitcoin transfers. Otherwise, more than double the number of downloads for the first $30 free gift.

Only 20% of business owners surveyed said they accept crypto payments, most of which were larger businesses rather than small-scale shops.

On the other hand, the adoption of Bitcoin as legal tender has introduced a new type of crypto-tourist to the country, despite the bear market. According to official figures, local tourism increased by 82.8% this year alone.

Critics continue to go back and forth on the topic of El Salvador’s use and adoption of Bitcoin. Thousands may protest in the street against the politics surrounding digital currency. But some still see it as technological and economic progress for a developing country like El Salvador.