Nayib Bukele, the president of El Salvador, who is 41 years old and has been in office for little over a year, has announced his decision to run for reelection to serve another term of five years. He was the one who oversaw the adoption of bitcoin in the country. Some people have taken offense to the declaration and have been quick to point out to Bukele that the constitution of El Salvador does not permit presidents to serve more than two consecutive terms in office.
In most developed nations, the presidents of those nations are reelected on a regular basis.
President Nayib Bukele, who is known for his support of bitcoin and other cryptocurrencies, recently disclosed his intention to run for reelection in spite of the fact that El Salvador’s constitution prevents presidents from holding more than one consecutive term in office. Bukele’s declaration, who apparently has high approval ratings, has been criticized by opponents and detractors, who accuse him of weakening the democratic structures of the country.
The leader of El Salvador, who is 41 years old, is said to have made the announcement as he was giving a speech about the country’s independence, as reported by Al Jazeera. Bukele defended his decision to serve successive terms by pointing out that this is a usual practice in developed nations. He did so while delivering his address.
I would like to inform the people of El Salvador that I have made the decision to submit my candidacy for the office of president of the republic. Elections are held often in developed nations. “Now El Salvador will too, owing to the new configuration of the democratic institution in our nation,” Bukele is quoted as saying.
According to another story, Bukele is quoted as saying that despite the possibility that wealthy countries will reject and oppose his proposals, he is unconcerned about this possibility because “they’re not the ones who get to decide.” The people of El Salvador are responsible for it.”
However, just as Bukele predicted would happen when he made the announcement, critics, including the government of the United States, have challenged his threat to override a clause in the constitution of El Salvador that clearly bars presidents from serving successive terms in office. The Atlantic Council, a research group based in the United States, has described Bukele’s proposal as the “final step in his power grab.”
El Salvador’s Debt Receives a Downgrade to CC from Fitch Ratings
In the meantime, the issue that was caused by Bukele’s bid for re-election occurred just a few days after the credit ratings firm Fitch Ratings downgraded El Salvador’s debt to CC status. This rating indicates that the debt of the Central American state is regarded as having a greater potential for default than the debt of nations that are currently experiencing armed conflict, such as Ukraine and the Republic of Congo.
El Salvador was the target of intense criticism even before the most recent downgrade by Fitch Ratings because of its decision in June 2021 to recognize bitcoin as a valid form of currency. According to Bitcoin.com News, other institutions, like as the International Monetary Fund (IMF), have expressed their disapproval of the action, claiming that it poses a risk to the country’s financial stability.
The subsequent request made by the IMF to El Salvador to abandon its bitcoin law was rejected by the Bukele government in El Salvador. Instead of caving in to the mounting pressure from the IMF and others, the government of El Salvador has taken action to educate its citizenry on bitcoin. Additionally, it transferred bitcoins to people through the Chivo application, which is the official wallet.
El Salvador was the first government in the world to recognize bitcoin as a form of legal cash, and the country also hosted the first-ever bitcoin conference, which was attended by representatives from 44 central banks. However, the much-discussed bitcoin volcano bonds that the country is planning to issue have not yet been implemented. According to a report by Bitcoin.com News, officials from El Salvador’s treasury previously pointed the finger at the conflict between Ukraine and Russia as the reason for the most recent delay in the issue of the bonds.