Nayib Bukele Wins Presidential Election, Bitcoin Adoption in El Salvador Continues

Source: Photo by Kanchanara on Unsplash

Nayib Bukele, a president known for his pro-Bitcoin stance, has achieved a significant victory in the El Salvador elections by securing 83% of the votes. This percentage is unprecedented in the context of elections in the modern era of democracy.

Bukele's victory has been confirmed by the Supreme Electoral Court of El Salvador, which has counted more than 70% of the votes.

Bukele's New Idea Party has also secured at least 54 out of 60 seats in the Legislative Assembly, further consolidating his political influence.

"We have won the presidential election with over 85% of the votes and at least 58 out of 60 deputies in the Assembly. A record in the history of world democracy," said Bukele on his Twitter account (5/2).

Bukele's victory clearly brings a fresh wave of momentum for Bitcoin adoption in the country, which has recognized BTC as legal tender since 2021.

Felix Ulloa, the vice president of El Salvador, has stated that if Bukele wins the presidential election by a large margin, he will deepen the implementation of Bitcoin policies, such as the citizenship program for investors who deposit Bitcoin and the issuance of Volcano bonds, which will provide some funds for the development of Bitcoin City.

Challenges of Bitcoin Adoption in El Salvador

Source: Photo by DrawKit Illustrations on Unsplash

On the other hand, despite bringing positive sentiment towards Bitcoin adoption in El Salvador, Bukele also faces challenges, especially regarding the unstable economic conditions of his country.

He is expected to focus more on addressing economic issues and providing opportunities for the people of El Salvador to improve their standard of living, so that crime is no longer the primary option.

Bitcoin may be part of the solution, but it is certainly not the foremost or best solution given the volatility of BTC. Bukele's various policies regarding Bitcoin must also ensure that Bitcoin adoption does not leave behind the local population.

According to a survey by the José Simeón Cañas Central American University, only 12% of the local population of El Salvador used Bitcoin for transactions in 2023, down from 24.4% in 2022.

Bukele and his government must find ways to ensure that the people of El Salvador can also benefit from the opportunities offered by Bitcoin and are not marginalized by the influx of Bitcoin users from abroad.

Another challenge is managing the expectations of the international Bitcoin community. While many are enthusiastic about El Salvador's steps in adopting Bitcoin as legal tender, there are also high concerns, including from the IMF, which has been opposed to this decision from the beginning.

Bukele must strike a balance between meeting the expectations of the Bitcoin community and ensuring that his policies remain beneficial to the people of El Salvador as a whole.

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