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- 1 Nayib Bukele is the 43rd President of El Salvador famed for passing a bill related to crypto legalization.
- 2 EI Salvador has become the first country to perceive Bitcoin as a legal tender.
Nayib Bukele after becoming the President of El Salvador proposed the bill regarding crypto to attract national and foreign investors. The bill also created financial opportunities for native companies, investors, and the government.
The main aim of the bill is to create a framework that gives legal certainty in matters related to crypto. The law also organizes the creation of the National Commission for Digital Assets and Bitcoin Funds Administration Agency. This will be in charge of managing, safeguarding, and investigating the fund from public offerings.
Nayib Bukele: Early Education and Career
Nayib Bukele, a politician and businessman, was born on July 24, 1981. At Central American University, he studied law but later dropped out. At a very early age of 18 he founded his first company. The digital newspaper, EI Faro, stated that he is the owner of Yamaha Motors. He was also the Director and President of OBERMET. He joined his presidency on June 1, 2019.
The politician served as mayor of Nuevo Cuscatian for 3 years from 2012-2015. Afterward, he served as the Mayor of San Salvador from 2015-2018. In 2017, Bukele was expelled from his party. In 2018, he developed his own party “Nuevas Ideas”.
Crypto Adoption Under Nayib Bukele Presidency
Nayib Bukele has always favored crypto which is highlighted by his work. On June 5, 2021, he introduced the bill to legalize Bitcoin in the country. The bill was passed on June 8, 2021. It was scheduled to come into effect on 7 September 2021. After 10 days of curiosity, the bill was rejected by the World Bank on June 17, 2021, citing reasons regarding transparency and environmental concerns related to Bitcoin mining.
Initiating the step further, on June 24, 2021, Athena Bitcoin declared its intention to invest $1 Million in installing 1500 cryptocurrency ATMs which will allow users to exchange U.S. Dollars for Bitcoin.
On 6th September 2021, the Salvador government bought its first 400 cryptocurrency coins and on the same day, the Bitcoin law came into effect.
The President announced on November 2021 that he is going to build the World’s first Bitcoin city in La Union, located at the base of the Conchagua Volcano. He said for Bitcoin mining, thermal energy will be used.
However, by January 2022, the price of Bitcoin fell substantially. The International Monetary Fund (IMF) stopped the talk of loans with the government due to concerns regarding the volatile nature of cryptocurrency.
In June 2022, the Salvador government lost $56 Million in Bitcoin. The economist, Steve Henkeco, declared the country soon going to default on debt. However, in July 2022, the President announced the Salvador government will buy back $560 Million in debt bonds by 2023 and 2025 to ease the worries.
Summary
Nayib Bukele has shown immense support for cryptocurrency. Besides, things from the crypto world are falling apart like the fluctuations in the price due to high volatility in the marketplace, he has never backend on the stage. He is always front-footed with new schemes and plans that concern Bitcoin.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
