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

October 30, 2023 Coin Telegraph

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.

| ÚLTIMA HORA: Al grito de “cinco más, cinco más y ni un paso atrás” Nayib Bukele da su discurso delante de miles de Salvadoreños luego de inscribir su candidatura presidencial para la reelección. “Necesitamos 5 años para seguir mejorando nuestro país.” pic.twitter.com/ApaP8yyQBm
— Eduardo Menoni (@eduardomenoni) October 27, 2023

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.

Nayib Bukele is running for reelection in El Salvador despite the fact that it’s prohibited in 7 articles of the constitution. The constitution drafted after our peace accords, after our bloody civil war. This is unconstitutional. https://t.co/ordgib7WMq
— Daniel Alvarenga (@puchicadanny) October 27, 2023

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.”

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.

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

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

October 29, 2023 Coin Telegraph

asset allocation

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.

I say often to portfolio managers and asset allocators that El Salvador has the potential to become the Singapore of the Americas. I expect continued increase in immigration to, capital investment in and overall growth in El Salvador. https://t.co/CmT554x12j
— Gabor Gurbacs (@gaborgurbacs) October 28, 2023

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.

The FIAT guys at @jpmorgan say El Salvador is finally “getting some credit”.

They are just catching up.

It will soon be: “Salvadoran bonds are now Investment Grade”.

You’ll see pic.twitter.com/6Z1r7iS9M4
— Nayib Bukele (@nayibbukele) May 9, 2023

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.

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

Argentinian presidential candidate wants CBDCs to ‘solve’ hyperinflation

October 3, 2023 Coin Telegraph

Argentine Peso

Sergio Massa’s stance on central bank digital currencies appears to be in complete opposition to Javier Milei, a pro-Bitcoin candidate who wants to abolish Argentina’s central bank.

Argentinian presidential candidate Sergio Massa has pledged to launch a central bank digital currency (CBDC) if elected to “solve” Argentina’s long-lasting inflation crisis.

“I am clear that inflation is a huge problem in Argentina,” the country’s second-leading candidate said in an Oct. 2 presidential debate, before outlining how he plans to “solve” the country’s ravaging inflation:

“We are going to launch the digital currency in Argentina. [...] We are going to do it globally for all of Argentina accompanied by a laundering law that allows those who have money abroad to bring it and use it freely without new taxes in parallel.”

Massa, who currently serves as Minister of Economy, shut down the idea that Argentina should move to the United States dollar:

“Dollarization is what generates the temptation of the dollar. Be patriots [and] defend our currency, do not promote the use of it [the U.S. dollar],” he said.

Argentina’s general election will take place on Oct. 22.

Two of three major voting polls suggest Massa is ever so slightly trailing Javier Milei, a pro-Bitcoin and anti-central bank candidate who won Argentina’s primary election in August.

*Argentinian voter preferences across three separate polls. Source: AS/COA.*

Data from American think tank AS/COA suggests that Massa will likely receive the most support in the Buenos Aires province — home to 16.6 million of the country’s 46 million residents — while Milei has majority backing in the more rural parts of the country.

Milei has previously signaled wanting to adopt the United States dollar as Argentina’s currency. As an economist and libertarian, Milei has long been a skeptic of central banking. Part of his campaign promise is to abolish Argentina’s central bank.

Milei previously referred to Bitcoin as a reaction against “central bank scammers” and that the Argentine peso allows politicians to scam Argentines with inflation.

Argentina’s third-leading presidential candidate, Patricia Bullrich would reportedly pursue a currency regime where the Argentine peso and U.S. dollar co-exist as legal tender if she wins the election.

*Value of the Argentine peso denominated in U.S. dollars since 2003. Source: Google Finance.*

The Argentine peso has fallen over 99% against the U.S. dollar since December 2023.

Most data suggests that Argentinian’s inflation is the third highest in the world, only trailing Venezuela and Lebanon.

Magazine: Should you ‘orange pill’ children? The case for Bitcoin kids books

El Salvador’s Bitcoiners teach 12-year-olds how to send sats

August 16, 2023 Coin Telegraph

Bitcoin Beach

Over 25,000 students in El Salvador have learned about Bitcoin in the classroom.

El Salvadorian school kids as young as 12 years old are being orange-pilled — taught to send their first Bitcoin (BTC) transaction by visiting members of El Salvador’s Bitcoin Beach.

Bitcoin Beach community leader Roman Martínez told Cointelegraph that he believes early-age education on Bitcoin, money and the economy may lay out a framework for many of the underprivileged kids he teaches to have a better shot at life.

Martínez explained Bitcoin Beach runs after-school programs to help set kids up to use Bitcoin.

“Every Friday we visit schools for Bitcoin education where we talk about money and dreams, we teach them to set up a Bitcoin wallet, we help them receive their first satoshi and make transactions.”

A satoshi, or sat, is the smallest denomination of Bitcoin, with 100 million sats making up one BTC.

*Martínez visting a school to show students how to use a Bitcoin wallet. Source: X*

Martínez noted that students have embraced the technology, despite many first having the impression that Bitcoin was hard to learn or only for those studying economics.

“Once [they’re] willing to learn it is so easy,” he added.

He explained Bitcoin Beach places a strong emphasis on teaching students about Bitcoin, money and banking because these subjects are largely not taught in schools.

“No one teaches you about money. We do transactions every day, we work for money, we save money, but no one teaches us about it. If you want to make a change, people and families need to learn about money.”

Martínez believes Bitcoin is the “latest evolution of money,” and by teaching kids about the benefits of Bitcoin — in combination with other life skills — they’ll be able to seek better employment opportunities.

“If they know English, have computer skills, know about Bitcoin and know about marketing, they can work remotely for anyone around the world,” he explained. “This is a big door that is open now for everyone.”

The future looks better! #God #surf #Bitcoin #Surfparatodos @Bitcoinbeach pic.twitter.com/sGpQtuyRsg
— Roman Martínez⚡️ (chimbera) (@romanmartinezc) July 22, 2023

According to its whitepaper, Bitcoin Beach is a movement to ensure Bitcoin’s potential is realized by helping those who have been excluded from the banking system.

It’s based in El Zonte — a beach town around an hour’s drive southwest of the nation’s capital, San Salvador, and one of the first areas in the country to start accepting Bitcoin.

Another Bitcoin education nonprofit based in El Salvador is My First Bitcoin, which has helped 25,000 students obtain a “Bitcoin Diploma” through the country’s public school system.

New Video Out Now!

25,000 students have been educated about #bitcoin in El Salvador.
I visited @MyfirstBitcoin_ to find out how they plan to change the world.

Full #ElSalvador Video Below pic.twitter.com/CL5bVgxH8K
— Max DeMarco ⚡️ (@itsmaxdemarco) August 15, 2023

Around 70% of El Salvadorians are currently unbanked. Financial inclusion has been a core focus for pro-Bitcoin President Nayib Bukele, who currently boasts one of the highest presidential approval rates in the world, according to some reports.

Many of the Bitcoin-related programs were kickstarted by the El Salvadoran government’s world-first move to make Bitcoin legal tender in the country in September 2021.

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.

Magazine: Should you ‘orange pill’ children? The case for Bitcoin kids books

US Senators Reintroduce ‘Accountability for Cryptocurrency in El Salvador (ACES) Act’

May 16, 2023 Bitcoin.com

Arkansas Makes Gold, Silver Legal Tender; 23 States Involved in Similar Legislation to Establish US Dollar Alternatives

April 21, 2023 Bitcoin.com

Reports Claim Chivo Bitcoin Wallet Is Flagging Wasabi Transactions in El Salvador

April 7, 2023 Bitcoin.com

After Presidential Rebuke, Nigeria’s Central Bank Says Demonetized Naira Banknotes Still Legal Tender

March 16, 2023 Bitcoin.com

Nigerian Banks Resume Dispensing Recently Demonetized Naira Banknotes

March 11, 2023 Bitcoin.com

IMF prefers to regulate crypto than banning it outright: Report

February 27, 2023 Coin Telegraph

Coin Telegraph

On the sidelines of the G20 meeting in India, IMF managing director Kristalina Georgieva said the agency would prefer to regulate crypto than an outright ban.

The International Monetary Fund would prefer to differentiate and regulate crypto assets rather than enforce an outright ban, though the nuclear option will remain on the table for now.

Speaking on the sidelines of the G20 finance ministers meetings in Bengaluru, India, IMF Managing Director Kristalina Georgieva explained how the United Nations financial agency views digital assets and what it would like to see in terms of regulation.

“We are very much in favor of regulating the world of digital money,” and this is a top priority, she stated.

During an interview with Bloomberg published on Feb. 27, she responded to a question on her recent comments about a potential complete ban on cryptocurrencies. She said there was still much confusion around the classification of digital money.

“Our first objective is to differentiate between central bank digital currencies that are backed by the state and publically issued crypto assets and stablecoins.”

Fully-backed stablecoins create a “reasonably good space for the economy,” however non-backed crypto assets are speculative, high risk, and not money, she added.

"There has to be more regulation,” IMF Managing Director Kristalina Georgieva says https://t.co/TMq6eWWwwf
— Bloomberg Crypto (@crypto) February 25, 2023

Citing a recent paper recommending global regulation standards, she said that crypto assets cannot be legal tender because they are not backed.

However, the option to ban cryptocurrencies “should not be taken off the table” if they begin to pose a greater risk to financial stability, she warned.

Nevertheless, good regulations, predictability, and consumer protection would be a better option, and banning would not need to be considered, said Georgieva.

When asked what could cause the decision to ban crypto, she said that an inability to protect consumers from the rapidly evolving world of crypto assets would be the primary catalyst.

The IMF, the Financial Stability Board, and the Bank for International Settlements (BIS) are jointly preparing regulatory framework guidelines to be released in the second half of the year.

legal tender

Share this video