El Salvador’s Bukele Approval Soars to 91.9% Despite Bitcoin’s Limited Impact

Nayib Bukele’s presidency continues to enjoy extraordinary public support in El Salvador, with a staggering 91.9% approval rating that would make most world leaders envious, even as the country’s groundbreaking Bitcoin experiment shows minimal traction among everyday citizens.

The latest survey from La Prensa Gráfica, polling 1,200 Salvadorans, reveals that 62.8% of respondents strongly approve of Bukele’s leadership, while a mere 1.8% expressed strong disapproval. The president himself couldn’t resist commenting on these numbers, sarcastically posting on X: “So now they’re 1.8%?”

Security Triumphs Over Cryptocurrency

The numbers tell a compelling story about what truly drives Bukele’s popularity. The administration’s aggressive security crackdown has delivered tangible results that resonate deeply with Salvadorans. Since 2019, Bukele has waged an all-out war on gang violence, opening the massive Terrorism Confinement Center (CECOT) and implementing sweeping emergency powers that have dramatically reduced homicide rates.

For ordinary Salvadorans, the ability to walk their streets without fear of gang violence has proven far more impactful than any cryptocurrency experiment. The government’s success in creating a safer environment has become the cornerstone of Bukele’s popularity, with improved security conditions ranking as the primary reason for public support across demographic groups.

Bitcoin’s Muted Reception

In stark contrast to the president’s sky-high approval ratings, Bitcoin adoption among everyday Salvadorans remains surprisingly limited. The cryptocurrency barely registered in the La Prensa Gráfica survey, with only 2.2% of respondents citing it as the biggest failure of Bukele’s six-year presidency. This lukewarm response reflects a broader pattern that has emerged since El Salvador made history in 2021 by becoming the first country to adopt Bitcoin as legal tender.

Despite the government’s requirement that businesses accept Bitcoin where possible and the launch of the Chivo wallet app, everyday usage has remained stubbornly low. Salvadorans have largely continued to prefer the US dollar, which has been the country’s official currency since 2001. The gap between government ambition and public adoption has become increasingly apparent, even to Bukele himself.

In a candid 2024 interview with TIME magazine, the president acknowledged that Bitcoin adoption hadn’t achieved the widespread acceptance that authorities initially envisioned. “We thought it would be more popular,” Bukele admitted, recognizing the disconnect between policy objectives and reality on the ground.

The IMF Challenge

El Salvador’s Bitcoin journey has not been without significant international pressure. The International Monetary Fund has repeatedly warned about the fiscal and financial stability risks associated with the country’s cryptocurrency policy. These concerns reached a critical point in 2024 when El Salvador secured a $1.4 billion IMF loan after tense negotiations that centered heavily on Bitcoin-related issues.

The IMF’s latest review acknowledged stronger-than-expected economic performance, projecting real GDP growth of about 4% for the current year with positive prospects extending forward. However, the international lender continues to press for greater transparency, stronger protections for public funds, and reduced financial risks associated with the cryptocurrency experiment.

The Chivo Wallet Conundrum

One of the most pressing issues in ongoing negotiations involves the government’s Chivo wallet, the official Bitcoin application launched alongside the legal tender law. The app has faced numerous complaints about fraud, identity theft, and technical problems since its inception. International lenders have specifically targeted the Chivo wallet in their reform demands, with discussions now focusing on its potential sale or complete shutdown.

While the government has signaled that the Chivo wallet could be wound down, private cryptocurrency wallets would continue operating freely in the country. This approach would allow El Salvador to maintain its Bitcoin-friendly reputation while addressing some of the most serious concerns about government-run digital currency infrastructure.

The Bitcoin Accumulation Strategy

Despite international pressure and limited public adoption, El Salvador has maintained its commitment to Bitcoin accumulation. Government officials report that the country has continued purchasing one Bitcoin per day since 2022, a strategy that Bukele has publicly pledged to maintain indefinitely. Online trackers linked to the government’s Bitcoin office indicate that national reserves continue to grow, even as the administration negotiates with international lenders.

This persistent accumulation strategy represents a fascinating case study in cryptocurrency policy. While everyday citizens show little interest in using Bitcoin for daily transactions, the government continues to view it as a valuable reserve asset. This disconnect between public usage and state strategy highlights the complex relationship between cryptocurrency policy and practical implementation.

Economic Performance Amid Crypto Controversy

The IMF’s latest assessment noted that El Salvador’s economic performance has exceeded expectations, with the country demonstrating resilience despite the controversies surrounding its Bitcoin policy. The projected 4% GDP growth rate represents solid performance for a developing nation, suggesting that the cryptocurrency experiment hasn’t derailed broader economic progress.

This economic stability has likely contributed to Bukele’s sustained popularity, as citizens see tangible improvements in their daily lives beyond the abstract concept of digital currency. The combination of enhanced security and steady economic growth has created a powerful foundation for public support that transcends any single policy initiative.

The Future of Bitcoin in El Salvador

As El Salvador moves forward, the future of its Bitcoin policy remains uncertain. The country has reached a delicate balance between maintaining its cryptocurrency-friendly reputation and addressing international concerns about financial stability. The government’s continued Bitcoin accumulation suggests that officials still see long-term value in cryptocurrency reserves, even as they scale back some of the more ambitious aspects of the original plan.

The contrast between Bukele’s record approval ratings and Bitcoin’s limited adoption presents an interesting paradox. It suggests that successful governance requires more than headline-grabbing innovations—it demands attention to fundamental concerns like security and economic stability that directly impact citizens’ daily lives.

For now, El Salvador’s Bitcoin experiment continues, albeit in a modified form that reflects both domestic realities and international pressures. Whether this approach will ultimately prove successful remains to be seen, but one thing is clear: Nayib Bukele’s political fortunes remain remarkably strong, powered by security improvements that resonate far more deeply with Salvadorans than any cryptocurrency initiative.

The post “El Salvador’s Bukele Approval Hits Record 91.9% Despite Tepid Bitcoin Adoption” appeared first on Cryptonews.

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