The Legislative Assembly of El Salvador, controlled by the new ideas of President Nayib Bukele, approved on Thursday, July 31, a series of constitutional reforms that allow indefinite presidential re -election and extend the mandates of five to six years.
With the decision, which consolidates Bukele’s power, questions arise about the implications of its indefinite permanence for the ambitious Bitcoin (BTC) project of the Central American Nation, which Includes a state treasure based on the pioneer digital currencythe development of initiatives such as the Bitcoin City and the creation of a financial ecosystem based on digital assets. Can Bukele revitalize this experiment, or its centralized governance style will limit its impact?
In itself, the vote, which culminated with 57 votes in favor and only 3 against, was a mere procedure for the folk. The proposal, presented by Deputy Ana Figueroa, eliminated the limits to re -election and suppresses the second electoral round. This movement occurs after Bukele won a second term last year, despite the constitutional prohibition, thanks to a 2021 ruling of the Supreme Court, whose magistrates were appointed by their own party.
For some members of the Bitcoin community, This permanence of Bukele in power can be interpreted as a sign of stability. It means that the Bitcoin Law does not run the risk of being abolished and that there would be more possibilities that the Bitcoin City futuristic project is completed, because they are intrinsically linked to Bukele’s vision initiatives.
With the possibility of remaining in power indefinitely, the continuity of these long -term policies would be ensured, eliminating the risk that a future opposition government dismantle the bitcoiner ecosystem that is under construction since 2021.
For an entrepreneur who moved to the country attracted by promises for Bitcoiners, Bukele’s permanence is synonymous with predictability.
However, for Bitcoin maximalists, this consolidation of power is a paradox. This, especially because of the fact that the project with Bitcoin of El Salvador becomes something dangerously dependent on the stability and decisions of a single leader, centralizing the risk in the same figure that promised a decentralized financial revolution.
El Salvador, a country of contrasts
The opposition in the assembly made it clear. “Democracy in El Salvador has died!” Exclaimed Marcela Villatoro, from the Arena party, one of the three votes against. “They do not realize what the indefinite re -election brings: it brings an accumulation of power and weakens democracy … nepotism grows and political participation stops,” he warned.
For its part, Bukele defenders believe that the measure is an act of popular will. “The power has returned to the only place to which it really belongs … to the Salvadoran people,” said Swedcy Callejas, vice president of the Assembly.
This defense relies on the immense popularity of Bukele, forged on his successful and hard war against gangs, a policy that has brought tens of thousands of people to jail under an exception regime that suspends constitutional guarantees. Salvadorans, tired of violence, have been willing to overlook criticisms about authoritarianism in exchange for street security.
However, if the international pressure for human rights violations intensifies – as groups such as Chrysal, which recently abandoned the country -, could already face sanctions that would affect their economy and, therefore, the viability of its model with Bitcoin.
An IMF imposing conditions to adopt Bitcoin
On the other hand, the agreement with the International Monetary Fund (IMF), which Bitcoin’s purchase prohibits And it limits mining by the public sector after February 2025, further complicates this vision.
This agreement with the IMF represents a brake on state ambitions in relation to Bitcoin. The loan of 1.4 billion dollars granted by the agency imposes strict limits on the Bitcoiner project of the Central American Nation.
As Cryptonoticia reported, the key conditions included adjustments in the Bitcoin Law voluntary, reversing its mandatory character. Taxes must now be paid in dollars, and the Wallet goat would be gradually eliminated by July 2025.
In addition there is the doubt of whether the country is increasing its BTC holdings or it is a mirage, as the IMF points out.
In short, Nayib Bukele has won the possibility of absolute power, but his star project with Bitcoin seems to have lost his freedom he proclaimed. With the indefinite re -election in one hand and the strict conditions of the IMF in the other, the president faces an inevitable election. And in the face of this, the experiment that began as a cry of financial independence must now obey the rules of the system that intended to challenge. It is clear that the Bukele era will be long, but it also remains to be seen if its was as President Pro Bitcoin will be more than a controlled mirage.
