In a significant political development, the president of El Salvador, Naib Bukele, who is known for his pro-Bitcoin stance, has been re-elected as president of El Salvador in the elections.
In the year Since taking office in 2019, he has garnered attention for his policies aimed at reducing gang violence and accepting Bitcoin as legal tender – an internationally pioneering and controversial move.
His management's investment in the Chivo crypto wallet and bitcoin underscored his commitment to the cryptocurrency. In particular, from the IMF, with more than 85 percent of the vote, Bukele's election, despite international scrutiny, shows widespread domestic support.
His next term is expected to focus on integrating Bitcoin into the country's economy, including Bitcoin-backed “volcanic bonds” powered by renewable energy BTC mining. Buquele's leadership continues to position El Salvador at the forefront of cryptocurrency adoption among nation-states.
The El Salvador Volcanic Bond, also known as the “Bitcoin Bond”, is a financial instrument issued by the Government of El Salvador. The concept began as part of the country's broader initiative to adopt cryptocurrencies, specifically bitcoin, as legal tender – a move El Salvador will become the first country in the world to take in September 2021.
But introducing Bitcoin as legal tender has introduced some complications for residents. As Bitcoin transaction fees skyrocketed for 2 years as cryptocurrencies gained popularity, people in El Salvador suddenly found it very expensive to process payments in BTC.
A user in the country pointed out on Twitter that trying to send $100 at the time would cost them $20.
Because every transaction must be verified by a miner, Bitcoin payments are prone to congestion when used heavily. And when there are many transactions pending, the cost of processing the transaction quickly can increase.
Editor's Note: This article was written with the help of AI. Edited and fact-checked by Stacy Elliott.
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