El Salvador’s Bitcoin Holdings and Constitutional Changes May Signal Shifts in Political and Economic Landscape

Key Points

1. El Salvador's legislature passed constitutional reforms allowing extended presidential terms and eliminating run-off voting, approved with a 57–3 vote led by President Bukele's New Ideas party.

2. Critics argue the reforms risk democratic erosion, with concerns over increased corruption, nepotism, and weakened governance, while supporters claim they improve efficiency and reflect popular will.

3. President Bukele enjoys high domestic approval ratings, with surveys showing over 78% support and an 8.15/10 performance score.

4. El Salvador's Bitcoin holdings have increased to over 6,255 BTC, with no new purchases reported by the IMF, and the country signed a memorandum with Bolivia to enhance crypto infrastructure.

5. The elimination of run-off elections is argued to save approximately $50 million, which could be reallocated to public services like hospitals and schools.