The leader of El Salvador, Nayib Bukele, has been reelected with over 87% of the votes in favor. He is set to embark on his second term, which will keep him in office until 2029. What prospects lie ahead?
On February 4th, general elections were held in El Salvador to elect the President and the Legislative Assembly of the country.
Despite the presence of a constitutional ban on re-election, the incumbent President Nayib Bukele was reelected for a second five-year term. Confirmation comes from the results of exit polls, which place him in the lead with over 87% of the votes after the closure of polling stations. Bukele’s party, Nuevas Ideas, secured an absolute majority in the Legislative Assembly, strengthening the president’s control over the legislative branch.
The outcome was widely anticipated, considering Bukele’s popularity in the country and his advantageous position in pre-election polls. Voter turnout was estimated at around 70%, a figure in line with previous elections.
Through a post on X, the president declared:
“According to our numbers, we have won the presidential elections with over 85% of the votes and a minimum of 58 out of 60 deputies in the Assembly. A record in the entire democratic history of the world. See you at 9 PM in front of the National Palace. God bless El Salvador.”
The maneuvers of the first term
During his first term, Bukele adopted preventive policies against the violence of criminal gangs through mass arrests. The country experienced a significant decrease in criminal activities during his tenure, dropping from 53 homicides per 100,000 people to the current 2.4. This outcome was achieved through a state of emergency declared almost two years ago, following a large-scale arrest campaign. Due to these measures, President Bukele has been accused by the international organization Amnesty International of human rights violations, particularly given the fact that 2% of the country’s adults are currently in prison.
In September 2021, El Salvador became the first nation in the world to adopt Bitcoin as legal tender. The country developed and introduced the Chivo wallet with the aim of promoting Bitcoin adoption and began purchasing the asset through sovereign reserves as part of a long-term investment plan.
The government also announced its collaboration with Tether to introduce the ‘Freedom Visa Program‘. This program will allow individuals to obtain Salvadoran citizenship by investing 1 million USDT or the equivalent in BTC.
Agenda for the second term
Bukele based his election campaign on the promise to continue improving public safety. He also reiterated his commitment to promoting economic growth and foreign investments in El Salvador. Finally, he reaffirmed his support for the adoption of Bitcoin as the country’s legal tender.
In an interview with Reuters, Vice President Felix Ulloa confirmed El Salvador’s commitment to its Bitcoin policy. Despite the International Monetary Fund’s appeal to revoke the legal tender status, Ulloa stated that the government remains steadfast in its approach. He added that the approval of spot Bitcoin ETFs in the United States has strengthened this determination.
For the upcoming year, El Salvador has planned the issuance of ‘Bitcoin bonds,’ which will finance Volcano Energy, a bitcoin mining company powered exclusively by renewable energy. Additionally, the seemingly ongoing plan for the development of a ‘Bitcoin City,’ a tax haven almost entirely exempt from taxes, continues. However, it’s worth noting that since the project announcement in December 2021, for over two years, no apparent progress seems to have been made.
