Bitcoin Will Continue to Be Legal Tender in El Salvador After Election – Vice President

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Bitcoin Will Continue to Be Legal Tender in El Salvador After Election – Vice President

The Vice President of El Salvador has said that Bitcoin will continue to be the country’s legal tender after the coming elections. According to Reuters, Felix Ulloa made this known via a statement on Wednesday.

President Nayib Bukele is expected to rerun for a second term alongside Felix Ulloa on Sunday, February 4. Thanks to a draconian drug crackdown, the duo is expected to handily win.

Before this happens, Vice President Felix has doubled down on the government’s commitment to Bitcoin as a legal tender, stating that this decision will continue in their second term.

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Ulloa made this affirmation after the IMF (International Monetary Fund) asked the country to reconsider its stance during negotiations for a billion-dollar loan.

Ulloa pointed out that the government remains strong on its decision and has no intention of reversing it. He added that the recent approval of a spot Bitcoin ETF by the United States Securities and Exchange Commission (SEC) only strengthened its position.

ETFs, which have been around for ten years, are seen to have revolutionized the bitcoin market by providing investors with exposure to the biggest cryptocurrency without requiring them to possess physical coins. Additionally, the ETFs give a huge boost to a scandal-plagued cryptocurrency market.

El Salvador constructs a tax-free crypto haven

Meanwhile, Ulloa stressed that the construction of a tax-free crypto haven suggested by President Bukele in the eastern part of the country will continue, as well as the passport issuance to investors who can contribute $1 million in cryptocurrency to the project.

Furthermore, the Salvadoran government will proceed with its plans to introduce Bitcoin-backed bonds in the first quarter of 2024, according to Ulloa, if Bukele and his New Ideas party win Sunday’s election as most polls indicate.

El Salvador has always shown interest and support for cryptocurrencies and its underlying blockchain technology. In September 2023, El Salvador partnered with MPB (Mi Premier Bitcoin) to introduce Bitcoin education to public schools.

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In December 2023, President Bukele announced that El Salvador had recorded a massive return on its Bitcoin investment, stating that if the country chose to sell its BTC holdings at the time, it would not only recover all its capital but would also make a few million dollars in profits.

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Victor Nnamdi Igbor "Swaezy" is a crypto enthusiast and writer with over 8 experience in blogging. He is an easy person and when not working, loves to have a good time.