In a groundbreaking development, El Salvador has approved constitutional reforms that could see President Nayib Bukele remain in power indefinitely. This move has sent shockwaves through both political and cryptocurrency circles, as the Bitcoin-adopting nation takes a controversial step toward centralized governance.
What Do the Constitutional Reforms Mean for El Salvador?
The reforms, passed by a 57-3 vote in the legislature, include:
- Removal of presidential term limits
- Extension of presidential terms from five to six years
- Elimination of run-off elections
How Does This Impact Bitcoin Adoption in El Salvador?
While the political implications are significant, cryptocurrency observers are particularly interested in how this might affect El Salvador’s Bitcoin strategy:
| Bitcoin Holdings | Recent Activity |
|---|---|
| 6,255.18 BTC | 31 BTC acquired in last 30 days |
| $50 million | Estimated savings from eliminating run-off elections |
Why Is Bukele’s Government So Controversial?
The reforms have drawn sharp criticism from opposition figures and international observers who see them as:
- A threat to democratic governance
- Potential for power accumulation
- Risk of increased corruption
What’s Next for El Salvador’s Crypto Future?
Despite the controversy, Bukele’s government continues to push forward with crypto initiatives:
- Maintaining daily Bitcoin purchases (despite IMF reports)
- Expanding crypto infrastructure through international agreements
- Using potential election savings for public projects
Frequently Asked Questions
How long can Bukele now remain in power?
The reforms remove all term limits, theoretically allowing Bukele to remain president indefinitely.
What does this mean for Bitcoin in El Salvador?
The changes could lead to more stable Bitcoin policies but also raise concerns about centralized decision-making.
How popular is Bukele in El Salvador?
Recent polls show approval ratings above 78%, suggesting strong domestic support despite international criticism.
Has El Salvador stopped buying Bitcoin?
While the IMF reported a pause, government data shows continued purchases, with 240 BTC acquired since December 2024.
