El Salvador’s Vice President Asserts Pro-Bitcoin Stance

• El Salvador’s vice president said Bitcoin will still be a legal tender should they be re-elected. 
• That also includes plans to launch a Bitcoin-backed bond, build a Bitcoin City, and grant passports for Bitcoin investments. 
• President Nayib Bukele is expected to see victory at the polls on February 4th.

El Salvador’s vice president, Felix Ulloa, confirmed on Wednesday that the pioneering cryptocurrency, Bitcoin, will remain a legal tender in the country during President Nayib Bukele’s second term, Reuters reported. 

Ahead of the election slated for February 4th, Ulloa stated that the current administration’s pro-Bitcon stance will continue into the next term. That also includes plans to broaden Bitcoin adoption and initiatives within the region. 

In 2021, the Central American country became the first in the world to adopt the cryptocurrency as a legal tender. While that decision drew criticism from various corners, Ulloa maintained that the policy would remain unchanged, even as the country seeks a $1.3 billion loan from the International Monetary Fund (IMF). 

According to the Reuters report, the IMF, one of the country’s critics, has asked El Salvador to reconsider its adoption of Bitcoin as a legal tender during the negotiation. However, Ulloa claimed that the country’s stance wouldn’t shift, especially as Bitcoin becomes institutionalized. 

The vice president said the launch of spot Bitcoin exchange-traded funds (ETF) in the US following approval by the US Securities and Exchange Commission (SEC) has only strengthened its resolve. ETFs are investment vehicles that track Bitcoin’s price and give investors exposure to the digital asset. 

Last year, El Salvador announced a $1 million Bitcoin investment program for those seeking the country’s passport. Additionally, Bukele has also proposed a Bitcoin City, a tax-free crypto haven. Ulloa said the two plans will go ahead in the forthcoming tenure, alongside a plan to launch Bitcoin-backed bonds this year. 

Bukele and his New Ideas party are expected to see victory when the Central American country heads to the polls on Sunday. So far, Bukele’s draconian crackdown on gangs in the Central American country is the predicted catalyst for the victory. 

Earlier this year, El Salvador’s bitcoin holdings raked in over $12 million for the first time in two years as Bitcoin crossed $46K. However, following the digital asset’s decline, the country’s portfolio now sits at a loss. At present, El Salvador’s bitcoin holding is worth around $118 million, according to data from Nayyibtracker.