El Salvador’s Vice President Felix Ulloa spoke to Reuters and made significant statements. During the interview, Ulloa stated that Bitcoin (BTC) would continue to be a legal tender in El Salvador throughout President Nayib Bukele’s second term. He also emphasized their plans to move forward with Bitcoin bonds, the construction of Bitcoin City, and granting passports to cryptocurrency investors.
“SEC’s Approval of Spot Bitcoin ETF Empowers Us”
Days before the expected election victory due to Bukele’s harsh measures against local gangs, Ulloa, who is temporarily on leave to run for re-election with Bukele, reiterated that the Central American country will continue to accept the largest cryptocurrency as legal currency. This statement from Ulloa comes after the International Monetary Fund (IMF) asked El Salvador to “reconsider” its decision during billion-dollar credit negotiations.
Ulloa stated that the government has no intention of stepping back from its Bitcoin decision and added that the U.S. Securities and Exchange Commission‘s (SEC) allowance of exchange-traded funds (ETFs) that directly hold BTC and track the price of Bitcoin listed in the U.S. has strengthened them.
Spot ETFs, which have been in the U.S. for less than a month, are seen as a game-changing element for Bitcoin by offering investors the opportunity to invest in the world’s largest cryptocurrency without directly holding BTC. Spot ETFs also provide significant support for the crypto world, which has been overshadowed by various scandals.
Ulloa mentioned that if Bukele and the New Ideas Party win the weekend elections as the majority of polls predict, the El Salvador government will continue with its plans to launch Bitcoin bonds in the first quarter of 2024. He also stated that the construction of Bitcoin City, a proposed tax-exempt crypto haven in the east of the country, and the continuation of granting passports to those who invest $1 million in cryptocurrency will proceed.
1.3 Billion Dollar Credit Negotiations Between El Salvador and IMF
As is known, El Salvador became the first country in the world to make Bitcoin a legal currency in September 2021. This step was met with harsh criticism towards the country’s administration. One of the strongest criticisms came from the IMF, with which the country is in negotiations for a $1.3 billion credit.
On the other hand, Ulloa, a 72-year-old lawyer, expressed hope that the obstacles to accessing the IMF credit would be overcome, saying, “A large part of the credit package has already been agreed upon.”
