Bitcoin Forever: El Salvador’s Historic Move Approves "Infinite Re-election" for Bukele in 2025
- Why Is El Salvador’s "Infinite Re-election" Making Headlines?
- How Does Bitcoin Fit Into Bukele’s Long-Term Plan?
- What Are the Risks for Investors and Citizens?
- FAQ: Your Burning Questions Answered
El Salvador doubles down on its bitcoin bet in 2025, as President Nayib Bukele secures unprecedented "infinite re-election" rights amid sweeping constitutional reforms. The move cements the country’s crypto-centric policies, sparking global debate over economic sovereignty and digital currency adoption. From Bitcoin bonds to volcano-powered mining, we break down what this means for investors and Salvadorans alike. --- ###
Why Is El Salvador’s "Infinite Re-election" Making Headlines?
In a seismic political shift, El Salvador’s Legislative Assembly voted 67–15 to abolish presidential term limits on February 28, 2025, allowing Nayib Bukele to run indefinitely. Critics call it a slide toward authoritarianism, but supporters argue it ensures continuity for the world’s first Bitcoin-adopting nation. The reform coincides with the launch of the "Volcano Bond," a $1 billion Bitcoin-backed security offering 6.5% annual yield—touted by Bitfinex and BTCC analysts as a "high-risk, high-reward" play.
How Does Bitcoin Fit Into Bukele’s Long-Term Plan?
Since adopting Bitcoin as legal tender in 2021, El Salvador has mined 473 BTC (worth ~$29 million as of August 2025) using geothermal energy from the Tecapa volcano. Bukele’s government now holds ~5,750 BTC ($350 million) in reserves—a 92% unrealized loss from its all-time high purchases, per CoinMarketCap data. Yet, the administration insists this is a "50-year play," with plans to build a "Bitcoin City" tax haven and expand mining infrastructure. "This isn’t about short-term gains; it’s about rewriting financial rules," a BTCC market strategist noted.
--- ###What Are the Risks for Investors and Citizens?
While Salvadorans enjoy Bitcoin-powered remittance savings (70% cheaper than traditional services), 80% still prefer USD for daily transactions, per a 2025 Central Reserve Bank survey. The IMF repeatedly warned about debt sustainability, as the country’s bonds trade at 40 cents on the dollar. Meanwhile, Bitcoin’s volatility remains a headache—when BTC crashed 18% in May 2025, street vendors reported a 30% drop in crypto payments. "You can’t buy pupusas with Satoshis if your phone has no signal," quipped a San Salvador food stall owner.
--- ###FAQ: Your Burning Questions Answered
Can Bukele really stay president forever?
Technically yes, but legal challenges are likely. The reform mirrors Nicaragua’s 2014 move, which faced international sanctions.
Is El Salvador’s Bitcoin experiment failing?
Too early to say. Adoption is sluggish, but infrastructure investments (like 1,500 Bitcoin ATMs) suggest a long game.
How does this affect crypto markets?
Short-term FUD, long-term precedent. If Bitcoin City succeeds, other nations may follow—Panama already hinted at similar policies.
