El Salvador President Nayib Bukele Eyes Bitcoin-Backed Bonds, Bitcoin Cities in Re-election Bid

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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February 1, 2024 03:14 EST

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El Salvador’s President Nayib Bukele intends to push forward with his plans for Bitcoin if he secures a second term in the upcoming election.

Despite pressure from the International Monetary Fund (IMF) to reconsider the country’s adoption of Bitcoin as legal tender during loan negotiations, the government remains steadfast in its decision, Reuters reported, citing his vice president Felix Ulloa.

Ulloa reportedly said that Bitcoin will continue to be recognized as legal tender in El Salvador.

He also mentioned the recent announcement by the U.S. Securities and Exchange Commission (SEC) approving exchange-traded funds (ETFs) that track Bitcoin, saying that the decision strengthens the government’s resolve to maintain its cryptocurrency-friendly stance.

Nayib Bukele’s Future Bitcoin Plans

The administration’s future plans include launching Bitcoin-backed bonds in the first quarter of 2024, constructing a tax-free crypto haven known as Bitcoin City in the eastern part of the country, and issuing passports to investors who contribute the equivalent of $1 million in cryptocurrency.

El Salvador made history in September 2021 by becoming the first country to adopt Bitcoin as legal tender, a move that faced criticism from various quarters, including the IMF.

Despite the challenges, the government remains optimistic and hopes to overcome obstacles to accessing IMF financing as it faces an acceleration of public debt.

We are HONORED to receive your attacks, just days before OUR election.

I would be very worried if we had your support.

Thank you 🙏🏼 https://t.co/7V5a0AdpCV

— Nayib Bukele (@nayibbukele) January 31, 2024

Bukele’s New Ideas party is predicted to win the upcoming election by a significant margin.

If these predictions hold true, the president’s ambitious plans for Bitcoin-backed initiatives and the development of a crypto-friendly environment are expected to move forward.

Ulloa, a 72-year-old lawyer, expressed confidence that the government’s decision to embrace Bitcoin enjoys global credibility and will continue to be upheld.

“The majority of the package has already been agreed upon,” he said.

El Salvador’s Bitcoin Bet Starts to Pay Off

El Salvador’s Bitcoin investment has turned green.

Data from Nayibtracker.com, which tracks the country’s Bitcoin purchases based on Bukele’s tweets, shows that El Salvador would walk away with roughly $4 million in profit if it decided to sell its holdings.

Aside from El Salvador, some other big investors in the cryptocurrency have also seen their profits reach billions.

MicroStrategy, one of the largest institutional holders of Bitcoin, has seen its unrealized profit soar to $2 billion. 

With Bitcoin reaching $42,000, the value of MicroStrategy’s holdings rose to approximately $7.3 billion, resulting in a profit exceeding $2 billion.

Likewise, Tether, the company behind the world’s largest stablecoin, has witnessed a significant increase in the value of its Bitcoin reserves, surpassing $1 billion in profit. 

Tether currently holds 57,576 BTC, with an average purchase price of $22,480 per coin, meaning the company’s holdings have gained around 85%, or $1.1 billion, since its acquisition.