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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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Hester Peirce: US crypto laws can’t assume ‘everything is a financial asset’

SEC commissioner Hester Peirce discussed a possible U.S. crypto legal framework, giving a reminder that not all uses are financial.

Cryptocurrency laws in the United States should be “reserved” and not regulate the technology as though every use is financial, argues a commissioner at the U.S. Securities and Exchange Commission.

On June 29, Commissioner Hester Peirce — dubbed “Crypto Mom” — appeared remotely at Australian Blockchain Week and was asked how she would regulate crypto, answering:

“I think we have to make sure that whatever regulatory framework you have doesn't just assume that everything is a financial asset.”

Peirce explained while crypto is thought of in “very financial terms” other uses exist such as enabling people to interact without requiring a centralized entity.

“That's useful in the financial context, but it's also useful in building a social media platform or whatever else,” she said.

Peirce believes any legal framework should take “a reserved approach” but include “enough clarity that people feel that they can try things.”

“There is something to be said for not putting a framework in place that is so inflexible that it doesn't accommodate the new uses of crypto and blockchain.”

In a seeming swipe at the SEC’s current approach — which many have criticized including Peirce — the commissioner said the laws “can't be reserved then, all of a sudden, [regulators] come in five years later with a bunch of enforcement actions.”

Related: Gary Gensler is hurting the little guys for Wall Street

Asked about her crypto advocacy, Peirce said she thinks the SEC “can do better” and believes if she can't speak freely, “then I don't know why I'm in that position.”

“Crypto presents [the SEC] an opportunity to rethink how we approach innovation [...] I really think we've been taking an approach that is not appropriate,” she said.

Alluding to the collapse of FTX and the allegations of misconduct that followed, Peirce advised the crypto industry to undertake self-regulation and pay attention to counterparty risks, conflicts of interest and leverage.

“Those are things you don't need a government regulator to tell you to do, but I think government regulators can play a role in that.”

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Digital Euro Should Be Attractive But Not ‘Too Successful,’ ECB’s Panetta Says

Digital Euro Should Be Attractive But Not ‘Too Successful,’ ECB’s Panetta SaysThe digital euro should be an attractive means of payment but its design should prevent it from becoming so successful as a store of value that it threatens banks and private money, according to Fabio Panetta, a high-ranking executive at the European Central Bank. Panetta stressed that both this paradox as well as the need […]

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