El Salvador to stay committed to Bitcoin amid spot ETF approval

Bitcoin will remain legal tender in El Salvador during president Nayib Bukele’s second term.

As Reuters writes, citing vice president Felix Ulloa, Bukele has redoubled efforts to accept cryptocurrency as legal tender in El Salvador. This comment came after the International Monetary Fund (IMF) asked El Salvador to “reconsider” the measure during negotiations for a billion-dollar loan.

Ulloa pointed out that El Salvador’s authorities will not abandon Bitcoin (BTC). He said the U.S. Securities and Exchange Commission’s (SEC) recent update to allow spot Bitcoin exchange-traded funds (ETFs) has only strengthened his resolve.

“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 resigned last December to focus on his 2024 re-election campaign. He reported his decision to the country’s legislature, and parliament has already approved Bukele’s request. Saying his decision to the country’s executive branch, he also called on the prosecutor general to investigate each of those present.

During his presidency, Bukele actively promoted Bitcoin. In September 2021, El Salvador declared Bitcoin as a means of payment and began purchasing cryptocurrency. Despite the significant depreciation of BTC, the authorities of El Salvador continued to adhere to their strategy. In mid-November 2022, the president announced that the country would begin buying one Bitcoin every day.

As a result, by December 2023, El Salvador’s investments in BTC had fully paid off; in January, the country’s BTC reserves were estimated at $12.6 million.