El Salvador Opens Door to More Bitcoin as Bukele’s Presidency Is Extended

The El Salvadorian legislative assembly voted to eliminate presidential term limits, a bold step toward consolidating political power.

The implications for crypto go beyond politics, as the move signals potential for more Bitcoin (BTC) accumulation.

El Salvador Expands Nayib Bukele’s Staying Power

The August 1 constitutional reforms, passed 57–3, allow President Nayib Bukele to seek re-election indefinitely. They also extend presidential terms from five to six years and postpone the next election to 2027.

The legislative overhaul comes at a moment when Bukele enjoys some of the highest approval ratings in the region, largely due to his iron-fisted crackdown on gang violence.

Yet critics, including human rights organizations and Western governments, argue that dismantling democratic checks could have long-term consequences.

Still, for the global crypto community, the implications go beyond politics. Bukele’s extended grip on power signals a continuation, and possibly expansion, of El Salvador’s Bitcoin-centric economic policy.

Since declaring Bitcoin legal tender in 2021, Bukele has positioned the nation as a symbol of financial sovereignty, even in the face of global skepticism.

Despite IMF pressure tied to a $1.4 billion credit program, which explicitly calls for a halt to further Bitcoin purchases, Bukele’s administration has continued to frame itself as an active Bitcoin accumulator publicly.

In late July, the government announced the acquisition of eight more BTC, purchased at an average price of $118,500 per coin. This brought the country’s total reported holdings to approximately 6,248 BTC, worth over $740 million.

Data on Arkham Intelligence corroborates the report, showing that the El Salvador government holds 6,255 BTC worth $719.9 million at current rates.

A Boost For El Salvador’s Bitcoin Path?

However, recent reports reveal complexities. A recent IMF report contradicted the claim of new purchases.

The report claimed that some of El Salvador’s latest Bitcoin movements were internal wallet transfers rather than fresh buys from the open market.

This has sparked renewed questions about transparency, as crypto analysts attempt to reconcile public announcements with on-chain activity.

“Another day, another Bitcoin transferred from an undisclosed govt controlled wallet to a public facing govt controlled wallet It’s misleading to present this as El Salvador stacking when in reality the total amount stays the same,” wrote John Dennehy, founder of the Bitcoin education project ‘My First Bitcoin’, in a recent post.

The reforms were passed with minimal opposition in a legislature dominated by Bukele’s New Ideas party, which only strengthens the perception of momentum.

Investors and builders see political continuity as a stabilizing force that could enable long-term blockchain infrastructure development, favorable regulation, and a sustained sovereign Bitcoin strategy in El Salvador.

Recent regional partnerships further highlight El Salvador’s growing influence. The government recently signed a cooperative crypto agreement with Bolivia, following a 630% surge in that country’s crypto activity. This move positioned both countries as leaders in shaping Latin America’s digital asset future.

Ultimately, the question is whether El Salvador’s Bitcoin path will be driven by genuine economic vision or political theater.

While Bukele’s renewed mandate strengthens his ability to act decisively, many still seek confirmation that behind the Bitcoin symbolism lies substance, and that the government’s on-chain behavior aligns with its bold narrative.

The post El Salvador Opens Door to More Bitcoin as Bukele’s Presidency Is Extended appeared first on BeInCrypto.

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Lockridge Okoth

https://beincrypto.com/el-salvador-bitcoin-bukele-term-extension/

2025-08-01 12:52:47