Bitcoin News

El Salvador President Nayib Bukele Begins Second Term to Lead Bitcoin Adoption

President Nayib Bukele begins his second term in El Salvador, focusing on Bitcoin adoption to transform the economy.
Published by
El Salvador President Nayib Bukele Begins Second Term to Lead Bitcoin Adoption

Highlights

  • Nayib Bukele starts his second term with overwhelming public support and near-total control of the government.
  • Bukele's controversial decision to adopt Bitcoin aims to attract investment and enhance financial inclusion despite economic volatility.
  • Bukele’s inauguration draws global attention, highlighting his influence and the potential impact of El Salvador's Bitcoin experiment on international financial systems.

El Salvador’s President Nayib Bukele, at 42, begins his second term on Saturday with unprecedented support from the electorate. Re-elected in February with a sweeping 85% of the vote, Bukele now enjoys near-total control over parliament and other state institutions. His aggressive crackdown on criminal gangs has returned a sense of normalcy to a society long plagued by violence, cementing his popularity.

Despite facing criticism from human rights organizations, Bukele, who unapologetically refers to himself as a “cool dictator,” stands as the most popular leader in Latin America according to regional polls. This widespread support has translated into a dominant legislative presence, with his New Ideas party capturing 54 out of 60 seats in the legislative elections, giving him significant power to implement his policies.

Advertisement

Bukele’s Bitcoin Adoption and Economic Strategy

One of the most ambitious and controversial aspects of Bukele’s administration is the adoption of Bitcoin as legal tender. In 2021, El Salvador became the first country in the world to embrace Bitcoin in this way, a move aimed at revolutionizing its economy. Bukele’s strategy is multifaceted: he aims to attract foreign investment, increase financial inclusion among unbanked citizens, and reduce reliance on the US dollar.

This bold initiative involved the investment of an undisclosed amount of taxpayer money into Bitcoin, despite stern warnings from international financial institutions about the cryptocurrency’s notorious volatility. Bitcoin’s price fluctuations have been dramatic, with lows of $16,000 and highs reaching $73,797. Bukele, however, remains steadfast in his belief that the potential benefits of Bitcoin, such as lower remittance fees and greater economic autonomy, outweigh the risks associated with its instability.

Bukele’s Bitcoin gamble comes at a time when El Salvador faces significant economic challenges. The country’s public debt has ballooned to over $30 billion, or 84% of its GDP, and economic growth is projected to slow to 3% this year from 3.5% in 2023. Critics argue that the volatility of Bitcoin could further destabilize the economy, increasing financial uncertainty. Despite these concerns, Bukele asserts that his administration’s efforts to reduce violent crime will support economic stability and growth.

His promise of a “period of prosperity” hinges on the successful integration of Bitcoin into the economy and the broader acceptance of this cryptocurrency by the global financial community. As Bukele continues to push his vision, the outcome of this financial experiment will be crucial in shaping El Salvador’s economic future and could set a precedent for other nations considering similar moves.

Also Read: Dogecoin Price: Whale Shifts 421M DOGE Sparking Price Speculations

Advertisement

Inauguration and International Relations

Bukele’s inauguration ceremony, held at the National Palace in San Salvador, was a high-profile event attended by dignitaries from around the world. Notable attendees included Spanish King Felipe VI and Argentine President Javier Milei, both of whom underscore Bukele’s influence and the international interest in his administration.

Additionally, Donald Trump Jr. was present, highlighting Bukele’s connections and admiration for former U.S. President Donald Trump. This gathering of prominent figures not only signifies Bukele’s growing stature on the international stage but also reflects the broad spectrum of support and curiosity regarding his unconventional policies, particularly the adoption of Bitcoin.

Also Read: Ethereum Founder Vitalik Buterin & Others Applauded By MatterLabs Amid ZK Saga, Here’s All

Share
Coingape Staff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • Bitcoin News

Bitcoin Treasuries Add Nearly $1B BTC This Week as Holdings Cross 1M BTC

This week, corporate Bitcoin treasuries exceeded 1 million BTC in total holdings. From September 1…

September 7, 2025
  • Bitcoin News

Peter Schiff Criticizes Bitcoin’s Performance Following Gold’s Rally To New ATH

Popular gold advocate Peter Schiff has criticized Bitcoin’s weakness against gold, calling it near bear…

September 7, 2025
  • Bitcoin News

Arkham Uncovers $5 Billion in Untouched Bitcoin From Germany’s Movie2K Seizure

Arkham Intelligence has identified 45,000 Bitcoin (BTC), valued at nearly $5 billion, that remains untouched…

September 7, 2025
  • 24/7 Cryptocurrency News

Ethereum Spot ETFs Record $447 Million in Outflows Amid Crypto Market Decline

Ethereum ETFs faced a sharp investor pullback this week, shedding nearly half a billion dollars…

September 6, 2025
  • 24/7 Cryptocurrency News

World Liberty Financial Discloses Reason for Blacklisting 272 Wallets

World Liberty Financial (WLFI) has confirmed that it blacklisted 272 wallets and explained why it…

September 6, 2025
  • 24/7 Cryptocurrency News

September 50 BPS Fed Rate Cut Odds Climb Ahead of CPI, PPI Data

Traders are beginning to price in the possibility of a 50 basis points (bps) Fed…

September 6, 2025