Bitcoin-Embracing El Salvador President’s Re-Election Declaration Slammed

Nayib Bukele, the 41-year-old Central American president, has announced his intention to serve another five years, just a little over a year since he supervised El Salvador's adoption bitcoin. Some have criticized the announcement, but Bukele has reminded them that El Salvador's Constitution prohibits consecutive terms for presidents.

Re-Elections of Presidents are a common practice in developed countries

President Nayib Bukele, El Salvador's bitcoin-embracing leader recently announced that he will serve another five-year term, despite the fact that El Salvador's constitution prohibits presidents from serving consecutive terms. Bukele's announcement, which is reportedly highly regarded, was criticized by critics and opponents who claim he has undermined the country’s democratic institutions.

Al Jazeera reports that the 41-year old leader made the announcement during a speech on El Salvador's independence. Bukele stated that his plan to serve consecutive terms was justifiable, as this is a common practice in developed countries.

"I am announcing to Salvadoran people that i have decided to run for president of the republic. Re-elections have been won by developed countries. "And thanks to the new structure of the democratic institution in our country, now El Salvador too will," Bukele said.

Bukele is also quoted in another report as saying that although resistance and opposition to his plans might be inevitable from developed countries, he doesn't care because they are not the ones who decide. El Salvador's people do.

As Bukele had anticipated when he announced the move, critics, including the U.S. government, have questioned his threat to override El Salvador's constitution which prohibits presidents from serving consecutive terms. The Atlantic Council, a United States think-tank, has described Bukele's plan to override a clause in El Salvador's constitution that prohibits presidents from serving consecutive terms as "the final step of his power grab."

Fitch Ratings Downgrades El Salvador's Debt to CC

The controversy surrounding Bukele's reelection bid occurred just a few days following the Fitch Ratings credit rating agency downgraded El Salvador’s debt to CC. Bloomberg reports that this rating indicates that the debt of Central America is considered more risky than those of war-torn nations like Ukraine and The Republic of Congo.

Fitch Ratings' recent downgrade of El Salvador was preceded by widespread criticism for its June 2021 decision to accept bitcoin as legal tender. According to News institutions, including the International Monetary Fund, have condemned the move as it threatens financial stability.

The Bukele government rebuffed the IMF's call for El Salvador to repeal its bitcoin law. The El Salvador government refused to succumb to growing pressure from IMF and other organizations. Instead, it took steps to educate its citizens about bitcoin. The official Chivo wallet application was used to transfer bitcoins to citizens.

El Salvador was the first country in the world to recognize bitcoin as a legal currency. It also hosted a bitcoin conference where 44 central banks participated. The much-talked about bitcoin volcano bonds have yet to be issued. According to a News report El Salvador's Treasury officials previously blamed the Ukraine/Russia war for the delay in issuing the bonds.

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By: Terence Zimwara
Title: Bitcoin-Embracing El Salvador President’s Re-Election Declaration Slammed
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Published Date: Tue, 20 Sep 2022 10:00:39 +0000

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