Central American country El Salvador has recently unveiled significant political news, as the country's Legislative Assembly overwhelmingly passed a constitutional amendment to remove presidential term limits, which means that the current president Nayib Bukele can theoretically be re-elected indefinitely. It is worth noting that this political change coincides with the third anniversary of El Salvador's "Bitcoin Law," sparking heated discussions in the international community about the future direction of the "Bitcoin nation."
1. The core content of the historic legislative amendment
On June 1, the Legislative Assembly controlled by Bukele's New Ideas party passed the constitutional amendment with 60 votes out of 67, with the core provisions including:
- Abolishing presidential term limits (original constitution prohibited re-election)
- The presidential term is shortened from 5 years to 4 years
- Allowing the sitting president to run for re-election
This reform will first apply in the 2024 election scheduled for February. Notably, El Salvador's Supreme Court ruled in 2021 that Bukele could run for re-election, paving the way for this legislative amendment.
2. Political guarantees for the continuity of Bitcoin policy
As the first country in the world to designate Bitcoin as legal tender, Bukele's government may thus gain the long-term continuity of its cryptocurrency policy:
- Bitcoin City construction: The $1 billion volcano bond issuance plan is expected to continue advancing
- Digital currency mining: Bitcoin mining infrastructure utilizing volcanic geothermal energy will accelerate implementation
- Cryptocurrency tax policy: The current tax exemption policy for Bitcoin transactions is expected to remain unchanged in the long term
"This effectively eliminates the political risks of the Bitcoin experiment being aborted midway," a blockchain consultant based in San Salvador told the media.
3. Multiple responses from the international community
Financial Markets:
- El Salvador's sovereign bond prices rose by 2.3%
- Bitcoin prices rose by 0.5% following the news release
International Organizations:
The Secretary-General of the Organization of American States (OAS) warns of the "risk of democratic backsliding"
The International Monetary Fund (IMF) remains silent (the organization has repeatedly criticized El Salvador's Bitcoin policy)
Cryptocurrency Community:
Several Bitcoin extremists have publicly expressed support, believing that "political stability is more important than electoral turnover"
Some cryptocurrency advocates worry that excessive concentration of power may distort its original intention
4. Future observations: The collision of economic transformation and political structure
Analysts point out that El Salvador's ongoing "national cryptoization" experiment faces three key nodes:
1. 2024 Election: If Bukele is re-elected, his Bitcoin policy will last at least until 2029
2. 2025: The scheduled launch of the Bitcoin City project
3. 2027: Redemption window for the first batch of investors in the volcano bonds
Interestingly, just a week before the legislative amendment was passed, the Bukele government announced the purchase of 80 Bitcoins (approximately $2.4 million), bringing the country's Bitcoin holdings to 2,798 coins. This "statement of action" approach seems to suggest a deep interconnection between cryptocurrency policy and political structural reforms.
When the crypto revolution meets political system reform, do you think this "long-term governance + currency reform experiment" model will become a reference template for other countries looking to embrace cryptocurrency? Feel free to share your insights in the comments.
