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

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Just a year after El Salvador oversaw bitcoin adoption, the 41-year-old president of the Central American country, Nayib Bukele, recently announced that he intends to serve another five-year term. The declaration has been criticized by some, who have been quick to remind Bukele that El Salvador’s constitution bars presidents from serving consecutive terms.

Re-election of presidents is a common practice in developed countries

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El Salvador’s bitcoin-embracing leader, President Nayib Bukele, recently revealed that he plans to serve another five-year term, even though the country’s constitution bars the president from serving a consecutive term. Bukele’s announcement, which reportedly enjoys high approval ratings, has been slammed by detractors and critics, who accuse him of undermining the country’s democratic institutions.

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according to al jazeera report goodThe 41-year-old leader made the announcement while giving a speech about the independence of El Salvador. In the speech, Bukele said that his plan to serve consecutive terms was justified as the practice is common in developed countries as well.

“I am announcing to the people of Salvador that I have decided to run as a candidate for President of the Republic. Developed countries hold re-elections. And thanks to the new configuration of the democratic institution of our country Now El Salvador will too,” Bukele reportedly said.

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in another report goodBukele is quoted as suggesting that resistance and opposition to his plans by developed countries may be inevitable, but he remains unaffected because “they are not the decision-makers. The people of El Salvador do.”

However, as Bukele speculated when making the announcement, critics, including the US government, have challenged his threat to override a clause in El Salvador’s constitution that specifically forbids presidents from serving consecutive terms. Is. United States-based think-tank Atlantic Council has described Bukele’s plan as “the final stage of his power grab”.

Fitch Ratings downgrades El Salvador’s debt to CC

Meanwhile, credit rating agency Fitch Ratings downgraded El Salvador’s debt to CC, just days after controversy erupted over Bukele’s re-election bid. According to a Bloomberg report, this rating means that the debt of the Central American state is considered more risky than that of war-torn countries such as Ukraine and the Republic of the Congo.

El Salvador also faced widespread criticism over its decision to adopt bitcoin as legal tender in June 2021, ahead of Fitch Ratings’ latest downgrade. As reported by News, institutions including the International Monetary Fund (IMF) have condemned the move, saying it threatened financial stability.

A subsequent call by the IMF for El Salvador to drop its bitcoin law was rejected by the Bukele government. Rather than succumbing to mounting pressure from the IMF and others, the El Salvador government took steps to educate citizens about bitcoin. It also transferred bitcoin to citizens using the official wallet application, Chivo.

As the first country to designate bitcoin as legal tender, El Salvador also held a bitcoin conference In which 44 central banks were represented. However, the country’s much-loved Bitcoin Volcano bond is yet to surface. El Salvador Treasury officials have previously blamed the Ukraine-Russia war for the latest postponement of bond issuance, reports news.

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