El Salvador's Dedication to Bitcoin Remains Strong Despite Spot ETF Acceptance

Bitcoin to Remain Legal Tender in El Salvador

El Salvador’s president, Nayib Bukele, has reaffirmed that Bitcoin will continue to be accepted as legal tender in the country during his second term. This decision comes despite the International Monetary Fund (IMF) urging El Salvador to reconsider the move during loan negotiations.

Vice president Felix Ulloa stated that El Salvador’s authorities are committed to keeping Bitcoin and highlighted the recent update by the U.S. Securities and Exchange Commission (SEC) allowing spot Bitcoin exchange-traded funds (ETFs) as further support for their stance.

“Not only will it [the law] be maintained… at this moment, it enjoys the greatest credibility in the entire world.”

Felix Ulloa, El Salvador’s vice president

Bukele’s Resignation and Bitcoin Advocacy

Last December, Bukele resigned to focus on his re-election campaign in 2024. Parliament has already approved his request. During his presidency, Bukele actively promoted Bitcoin, declaring it as a means of payment in September 2021 and initiating cryptocurrency purchases. Despite Bitcoin’s depreciation, El Salvador continued with its strategy and announced daily Bitcoin purchases starting in mid-November 2022.

By December 2023, El Salvador’s BTC investments had paid off completely, with BTC reserves estimated at $12.6 million in January.

Hot Take: Bitcoin’s Enduring Status in El Salvador

Despite calls from the IMF to reconsider its acceptance of Bitcoin as legal tender, El Salvador remains committed to its decision. President Nayib Bukele’s reaffirmation during his second term emphasizes the country’s determination to embrace cryptocurrency. The recent SEC update allowing spot Bitcoin ETFs further strengthens their conviction. El Salvador’s successful BTC investments and reserves demonstrate the potential benefits of adopting Bitcoin as a means of payment. As the country continues to navigate its crypto-friendly path, it sets an example for others to consider the advantages and challenges of embracing digital currencies.