Nayib Bukele, the President of El Salvador, renowned for championing Bitcoin as legal tender in 2021, has clinched a second five-year term, as indicated by exit polls.
In a noteworthy political development, Nayib Bukele, who has consistently advocated for Bitcoin, especially through making it legal tender, has been re-elected as the President of El Salvador, according to preliminary exit polls.
Since assuming office in 2019, Bukele has gained global attention for his initiatives targeting the reduction of gang violence and his groundbreaking move to embrace Bitcoin as legal tender, a decision that stirred both praise and controversy on the international stage.
Bukele’s administration introduced the Chivo crypto wallet and actively invested in Bitcoin, showcasing a steadfast commitment to cryptocurrency. Despite facing scrutiny from international bodies, including the International Monetary Fund (IMF), Bukele’s re-election with an overwhelming majority—exceeding 85% of the vote—underscores widespread support within the country.
The upcoming term is anticipated to witness a continued effort to integrate Bitcoin further into El Salvador’s economy. Plans include the launch of Bitcoin-backed “Volcano bonds,” aimed at financing renewable energy-powered Bitcoin mining. Bukele’s leadership positions El Salvador as a trailblazer in the global adoption of cryptocurrency on a national scale.
The concept of an El Salvador Volcano Bond, often referred to as the “Bitcoin Bond,” was proposed by the government of El Salvador. This financial instrument aligns with the country’s broader initiative to embrace cryptocurrency, particularly Bitcoin, as legal tender—a pioneering move that made El Salvador the world’s first country to do so in September 2021.
However, the adoption of Bitcoin as legal tender has presented challenges for residents. Soaring Bitcoin transaction fees, reaching 2-year highs during periods of increased demand, made it economically impractical for individuals in El Salvador to process payments with BTC.
A resident highlighted on Twitter that attempting to send $100 at that time would have incurred $20 in fees. The surge in Bitcoin fees during times of high demand is attributed to the need for each transaction to be verified by a miner. With a backlog of transactions, the cost of expediting a transaction can experience a sharp increase.
