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El Salvador pro-Bitcoin president Nayib Bukele launches re-election bid

Despite Bukele’s popularity, some critics argue he isn’t eligible to be re-elected under El Salvador’s constitution.

El Salvador president Nayib Bukele has filed paperwork to be re-elected in the country’s upcoming 2024 presidential election in February.

Bukele, a Bitcoin advocate, received strong support from the public on Oct. 26 after he was officially nominated by his party to run for re-election.

“Five more [years], five more and not one step back,” Bukele said in a speech in front of thousands of El Salvadorans. “We need five years to continue improving our country,” he added.

Bukele rose to power in 2019 when his political party, Neuva (New) Ideas, broke three decades of two-party dominance between the Nationalist Republican Alliance and the Farabundo Martí National Liberation Front (FMNLB).

However, despite his popularity among the local population, critics such as El Salvadoran lawyer Alfonso Fajardo maintain that the country’s constitution prohibits Bukele isn’t eligible to seek a second consecutive term.

“Today is a good day to remember that immediate presidential re-election is prohibited up to 7 times by the Constitution,” he said on Oct. 26.

However, in September 2021, El Salvador’s Supreme Court ruled that presidents can run for consecutive elections.

New Ideas is backed by 70% of the country’s voting population, according to Reuters, which cited a study by an El Salvadoran university. Its closest competitor only received 4% of the total votes.

One of New Ideas’ competitors, FMNLB, filed a lawsuit in June 2021 claiming Bukele’s Bitcoin adoption program is unconstitutional. However, that complaint made little ground as Bukele and El Salvador made Bitcoin legal tender three months later September 2021.

The Bukele government has also implemented other tech-friendly policies aimed at strengthening the country’s economy, such as eliminating all taxes on technological innovations.

Gabor Gurbacs, a VanEck strategy advisor, recently said that El Salvador has the potential to become the “Singapore of the Americas.”

Related: El Salvador launches first Bitcoin mining pool as Volcano Energy partners with Luxor

Much of Bukele’s popularity comes from his heavy-handed crackdown against MS-13, a multi-national gang which contributed towards El Salvador recording the highest homicide rates in the world six years ago.

As a result of the crackdown, El Salvador's homicide rate has fallen a staggering 92.6% from its peak of 106 per 100,000 inhabitants in 2015 to 7.8 in 2022. It now boasts one of the lowest crime rates in Latin America.

However, the United Nations and other critics argue El Salvador breached human rights laws by imprisoning 65,000 without affording them legal rights to defend themselves.

El Salvador’s presidential election will take place on Feb. 4, 2024.

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Bitcoin-friendly El Salvador can become ‘Singapore of the Americas’: VanEck advisor

VanEck strategy advisor Gabor Gurbacs expects a wave of new investment capital and immigration will push El Salvador’s economic growth in the coming years.

El Salvador can follow Singapore’s lead and become a financial center in the Americas, according to  Gabor Gurbacs, strategy advisor of investment management firm VanEck.

“I say often to portfolio managers and asset allocators that El Salvador has the potential to become the Singapore of the Americas,” Gurbacs explained in an Oct. 28 X post.

Similar to what Singapore achieved in the late 1900s, Gurbacs expects new capital investment and immigration will be the main drivers behind El Salvador’s increased economic growth over the next few years.

His comments follow an Oct. 28 post by United States broadcaster and Bitcoiner Max Keiser, which was captioned “Move to #ElSalvador, The New Land of the Free.”

Keiser, who now lives in El Salvador, listed Bitcoin (BTC) and the U.S. dollar's legal tender status, a clean up in El Salvadoran crime, great beaches and great coffee as some of the main reasons why the Central American country should be on everyone’s radar.

El Salvador’s status as an emerging economy became more prominent when Nayib Bukele was appointed as the country’s president in June 2019.

El Salvador’s sovereign bonds have outperformed many other emerging markets in 2023, yielding an eye-popping 70% return by August 2023 which caught the attention of JPMorgan, Eaton Vance and other investment management firms.

Bukele and the El Salvador government made Bitcoin legal tender in September 2021 in addition to rolling out a Bitcoin custodial wallet, Chivo Wallet for all El Salvadorans in the same week.

El Salvador is also tapping into its volcanic resources to power a Bitcoin mining operation startup, Volcano Energy, which launched in June on the back of a $1 billion investment. Keiser serves as the company’s executive chairman.

Its first mining pool was launched following a partnership with Bitcoin miners Luxor Technology in October.

Related: El Salvador’s Bitcoin strategy evolved with the bear market in 2022

El Salvador appointed Dr. Saifedean Ammous, the author of “The Bitcoin Standard” as an economic advisor to the National Bitcoin Office in May. The country plans to accumulate Bitcoin as a strategy to clean out its debt within the next five years.

Bukele also made a bold move to eliminate all taxes on technology innovations in April — which could entice more entrepreneurs and foreign capital to move into the country.

Magazine: What it’s actually like to use Bitcoin in El Salvador

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