El Salvador’s legislative assembly has voted to remove presidential term limits, a move that allows President Nayib Bukele to seek re-election indefinitely and extend presidential terms from five to six years.
The constitutional reforms, passed on August 1 by a 57–3 margin, also delay the next election to 2027, cementing Bukele’s influence over El Salvador’s political and economic direction.
Bukele’s bitcoin policy continues
Since making bitcoin legal tender in 2021, Bukele has promoted the country as a hub for financial sovereignty, often in defiance of international pressure.
Despite IMF stipulations against further bitcoin purchases, El Salvador’s government recently announced the acquisition of eight additional BTC at an average of $118,500 per coin, bringing total reported holdings to approximately 6,248 BTC, worth over $740 million.
Data from Arkham Intelligence showed the government’s balance at 6,255 BTC.
Transparency and skepticism
However, questions linger about the transparency of these purchases.
A recent IMF report indicated that some of El Salvador’s latest bitcoin activity may have involved internal wallet transfers rather than new open market buys.
John Dennehy, founder of My First Bitcoin, commented:
“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.”
These concerns are echoed by other analysts, who note discrepancies between public announcements and on-chain data.
Political continuity and regional influence
Despite criticism from human rights organizations and Western governments, Bukele’s popularity remains high due to his tough stance on gang violence.
Investors and industry participants view the extended mandate as a stabilizing factor for further bitcoin infrastructure development and regulation in El Salvador.
The country has also expanded regional partnerships, most recently signing a cooperative digital asset agreement with Bolivia after a surge in that nation’s bitcoin activity.
Ongoing scrutiny
While Bukele’s strengthened position makes further bitcoin accumulation likely, calls for greater transparency persist.
The international community and market observers continue to watch for evidence that El Salvador’s on-chain actions match its public bitcoin narrative.
