‘Chivo’ is a Salvadoran slang for cool and perhaps the best way to describe the 43-year-old president Nayib Bukele of El Salvador, who is on a mission to revive the central American nation’s economy using Bitcoin reserves.
A strong proponent of Bitcoin, Bukele recently announced that El Salvador is no longer dependent on foreign debt when it comes to their annual budget.
This was a big revelation for the world as El Salvador had once discontinued their local currency ‘Colon’ and adopted the US dollar as official currency back in 2001.
The turnaround of El Salvador’s economy has been possible largely due to the policies of President Bukele. Dubbed as the “coolest dictator ever”, Bukele has been instrumental in coming down heavily upon drug cartels and gangland violence that plague Latin and Central American countries.
But not much is known about the personal life of Bukele, his journey from a businessman of humble origins to joining a leftist political party to becoming the president of El Salvador winning back to back elections.
In this special article, we will focus upon Bukele, his personal journey, his political moves and his love for all things crypto.
Nayib Bukele Early Days
On a warm summer evening in the heart of San Salvador, the capital of El Salvador, a young Nayib stood on the balcony of his family’s mansion, staring out at the cityscape that lay in front of him.
Little did he know that in 30 years down the line, he will be taking helm of his country’s affairs, staring at the same setting sun, from the presidential palace in San Salvador.
Bukele’s journey from the family balcony to the presidential palace is a story of unfiltered ambition and unorthodox methods.
Bukele was born on July 24, 1981, in San Salvador, to a mixed religious background: his father, Armando Bukele Kattán, was a prominent businessman of Palestinian descent and a leader in the country’s Muslim community, while his mother, Olga Ortez de Bukele, was Roman Catholic.
His upbringing was not lesser than a ‘boy prince’. After completing high school, he dropped out of Central American University, where he studied law, to join his family business called Brand Nolck Publicidad, a PR firm.
In this phase, he worked closely with his firm’s most significant client—the Farabundo Martí National Liberation Front (FMLN), one of the two political parties that have played a crucial role in the Salvadoran government since the civil war ended in 1992.
Note that, before 1992, FMLN was operating a guerrilla movement, which they stopped after the end of the civil war and turned into a legitimate political party.
Political Journey: From Mayor to President of El Salvador
Bukele’s entry into politics was heavily influenced by his father’s entrepreneurial spirit and his deep-seated belief in the need for reform.
While working at his family business, he developed communication skills and political acumen by managing public relations campaigns for the left-wing Farabundo Martí National Liberation Front (FMLN). At that time, Nayib Bukele also found the ground reality while doing great in the public relations business. He said, “It showed me the reality of my country.”
In 2012, Bukele’s political career took off when he was elected as the mayor of Nuevo Cuscatlán, a small town near San Salvador. His tenure was marked by efforts to improve local infrastructure and social services, which gained him considerable popularity. Building on this success, he was elected mayor of San Salvador in 2015, where he resumed to focus on urban development and anti-corruption measures.
Bukele’s motivation to enter the presidential race emerged from his frustration with the traditional political parties, which he used to consider corrupt and ineffective.
After being expelled from the FMLN in 2017, he founded the Nuevas Ideas party. This brand-new party spoke about transparency and modernization. His intense presidential campaign leveraged his strong social media presence and his appeal to younger voters, who were disappointed with the status quo.
Elected president in 2019, Bukele quickly implemented his Territorial Control Plan to combat gang violence, which significantly reduced the country’s homicide rate.
Despite his controversial methods, including mass arrests that critics argue have eroded democratic institutions, Bukele remained quite popular among Salvadorans who appreciate his tough stance on crime and corruption.
Nayib’s Tough Stance against Drug Cartels
President Nayib Bukele of El Salvador has adopted a harsh approach to control gangs and bring social justice to the country.
Under Nayib Bukele’s administration, the most popular action has been the implementation of a prolonged state of emergency. He implemented the national emergency in March 2022 after observing the increasing numbers of gang violence.
Over time, the state of emergency has been extended continuously and involves the suspension of certain constitutional rights, making it easier for law enforcement to arrest suspected gang members without due process.
Under this crackdown, over 77,000 people have been arrested, which is more than 1% of El Salvador’s population. These arrested gangs are kept at a facility known as the Centre for the Confinement of Terrorism.
These aggressive actions have impacted and disrupted gang activities, forcing many gang members to flee the country or go into hiding. In 2021, the homicide rate plunged to the lowest it has been since the Salvadoran Civil War ended in 1992, with 18 homicides per 100,000 people.
Moreover, the large-scale arrests and strict measures in prisons have also prevented gang leaders from effectively communicating and coordinating with their members. This helped Nayib Bukele to break the gangs.
However, this approach has been heavily criticized for human rights violations. Reports indicate that many arrests under Nayib Bukele’s watch were ‘dictatorial’, in which individuals were detained on little or no evidence and denied access to legal counsel.
Despite these concerns, Bukele’s harsh policies have aided in a major reduction in violence and gang control in many sensitive areas. This includes downtown San Salvador – parts of Soyapango, Apopoa, and its surroundings on the east side of the city, as well as Mejicanos.
The murder rate in El Salvador, once used to be called the Homicide capital of the world, has dropped significantly, thanks to the government’s aggressive security measures.
Bukele’s Love For Bitcoin Is Endless
Nayib Bukele, the President of El Salvador, made a bold decision in September 2021 by adopting Bitcoin as a legal tender, making El Salvador the first country in the world to do so.
He has been a vocal critic of the American taxation system and timely, and he slammed the U.S. for its negative impact on the global market. Recently, he shared a ‘brrrrrrr’ meme, which sarcastically means printing dollars in the wake of inflation.
The move to announce Bitcoin as a legal tender was part of a broader strategy to strengthen the country’s economy, attract foreign investment, and reduce reliance on outdated financial systems.
After the announcement, Bukele began increasing El Salvador’s Bitcoin holdings, with the government actively purchasing Bitcoin. This strategic accumulation allowed the country to benefit from the cryptocurrency’s price fluctuations. Also, As Bitcoin’s value surged over time, the profits from these investments were directed into various national projects, particularly infrastructure development.
Old reports suggest that as of March 2024, El Salvador’s bitcoin investment gained over 50% profit, with bitcoin having recorded a new all-time high of over $73,000. However, this profitability changes over time as the BTC price continuously varies.
The adoption of Bitcoin also aimed to provide financial inclusion for the unbanked population in El Salvador. By leveraging Bitcoin, citizens could access financial services through digital wallets, bypassing the need for traditional banking infrastructure. This was a really commendable move in a country where a large portion of the population lacks access to banking services.
Recently, El Salvador announced that it will provide Bitcoin instruction and certification to 80,000 civil servants.
El Salvador currently holds around 5,750 Bitcoins. The gambit in Bitcoin has provided major financial resources that the government has used to fund infrastructure projects, including roads, schools, and healthcare facilities. These developments are crucial for the country’s economic growth and improving the quality of life for its citizens.
Bukele’s administration has utilized the country’s natural resources to support its Bitcoin ambitions. By tapping into geothermal energy from the country’s volcanoes, El Salvador has created a sustainable and environmentally friendly method of Bitcoin mining.
Conclusion
As the story of Nayib Bukele unfolds, it is one of a man driven by a unique blend of heritage and innovation, a leader poised to reshape his nation’s destiny through Bitcoin in the digital era.
Also Read: This El Salvador Taxi Driver Got Rich Through Bitcoins
