Bukele Begins Second Term Facing Economic Challenges and Leading Bitcoin Adoption
El Salvador's President Nayib Bukele is set to be inaugurated for a second term following a court decision that allowed his re-election, despite the country's constitution prohibiting consecutive terms. The ceremony in San Salvador will be attended by notable figures, including Argentina's President Javier Milei and Donald Trump Jr., amidst heightened security measures after police thwarted a bomb threat and arrested seven individuals for plotting to detonate explosives.
Bukele, who was re-elected in February with 85% of the vote, continues to enjoy high approval ratings due to his aggressive stance on crime reduction. However, his administration faces significant economic challenges, with over a quarter of Salvadorans living in poverty, rising unemployment, and public debt exceeding $30 billion, equivalent to 84% of the GDP. Additionally, his controversial move to adopt Bitcoin as legal tender has drawn both international criticism and praise, with concerns about its potential impact on financial stability. As Bukele begins his new term, his focus will be on navigating these economic issues while maintaining his popularity.
