El Salvador made headlines in September when it became the first country to adopt bitcoin as legal tender. On the first day of the new regime, the cryptocurrency’s global price slumped by more than 10%, noted the Financial Times. Undeterred by that, or the botched implementation of his trailblazing experiment, president Nayib Bukele tweeted that the small central American nation had increased its holdings. “Buying the dip…” he wrote, adding a winking emoji.
“CEO of El Salvador”
Unimpressed bond traders rushed to sell off Salvadorian debt. But the jitters weren’t just finance-related. Since taking power in a landslide election victory in 2019, Bukele has staged a power grab, packing the Supreme Court with sympathisers who then changed the constitution to enable him to run again in 2024. Last year he marked a speech to the UN by describing himself on his ever-changing Twitter bio as “the coolest dictator in the world” (his current moniker is “CEO of El Salvador”), says The Observer. His approval rating is currently topping 80%.
There were certainly grounds for optimism when Bukele swept to power three years ago on an “anti-crime, anti-corruption” ticket – marketing himself brilliantly as “untainted” by the graft of the two main parties, says The Sunday Times.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Bukele was born in 1981 into a well-heeled immigrant family of Palestinian and Greek heritage (his father converted to Islam later in life). He was a law-school dropout who spent much of his 20s managing nightclubs in which his family had invested, says The Economist. He got his start in politics in 2012, when he was elected as the youthful mayor of Nuevo Cuscatlán – following that up three years later when he won the mayoralty of El Salvador’s capital, San Salvador. In both positions he earned plaudits for cutting homicide rates, cleaning up city centres and instigating social handouts. For many, he remains a man who has made life better and “gets things done”.
It was Bukele’s drive to clean up crime that provided the first warning of his autocratic tendencies. In February 2020, frustrated by delays in financing his security programme, he arrived in Parliament with gun-toting soldiers and sat in the speaker’s chair. Critics claim he has since used the pandemic to bolster his position, says The Observer – presenting an “apocalyptic scenario” in which the only solution was to give the president more power. And Bukele’s tendency to keep things in the family hasn’t added to his democratic credentials, says The Economist. His uncle is commerce secretary, his wife Gabriela “picked much of the cabinet”, and his “most influential associates are his brothers: Karim, Ibrajim and Yusef”. One economist argues that El Salvador’s government has become “a corporatist family project” – aided by the regime’s growing ties with China.
The world’s first bitcoin city
Meantime, Bukele is working on plans to build the world’s first bitcoin city at the base of the Conchagua volcano, which would use geothermal energy to power mining. But the cryptocurrency’s big fall in value may not be the only cloud on Bukele’s horizon, says The Wall Street Journal. Growing evidence that he has been “playing footsie with transnational criminal organisations” in an effort to quell local gangs and boost his stranglehold on power is unlikely to play well at home. Some Salvadorians took to the streets last September to protest. That trickle of discontent could turn into a flood.
-
‘Sandwich generation’ carers losing £6,000 a year to support elderly relativesMiddle-aged adults are often caught between caring for children or grandchildren and their elderly parents, leaving them taking time out of the workforce and facing a huge hit to wages while they are still trying to save for retirement. We look at the true cost of caring.
-
Ground rents to be capped at £250 a year – what does it mean for you?The government has published draft legislation which would see ground rents capped at £250 per year for leaseholders. We examine what it means for homeowners and the housing market.
-
Michael Moritz: the richest Welshman to walk the EarthMichael Moritz started out as a journalist before catching the eye of a Silicon Valley titan. He finds Donald Trump to be “an absurd buffoon”
-
David Zaslav, Hollywood’s anti-hero dealmakerWarner Bros’ boss David Zaslav is embroiled in a fight over the future of the studio that he took control of in 2022. There are many plot twists yet to come
-
The rise and fall of Nicolás Maduro, Venezuela's ruthless dictatorNicolás Maduro is known for getting what he wants out of any situation. That might be a challenge now
-
The political economy of Clarkson’s FarmOpinion Clarkson’s Farm is an amusing TV show that proves to be an insightful portrayal of political and economic life, says Stuart Watkins
-
The most influential people of 2025Here are the most influential people of 2025, from New York's mayor-elect Zohran Mamdani to Japan’s Iron Lady Sanae Takaichi
-
Luana Lopes Lara: The ballerina who made a billion from prediction marketsLuana Lopes Lara trained at the Bolshoi, but hung up her ballet shoes when she had the idea of setting up a business in the prediction markets. That paid off
-
Who is Christopher Harborne, crypto billionaire and Reform UK’s new mega-donor?Christopher Harborne came into the spotlight when it emerged he had given £9 million to Nigel Farage's Reform UK. How did he make his millions?
-
Why Trustpilot is a stock to watch for exposure to the e-commerce marketTrustpilot has built a defensible position in one of the most critical areas of the internet: the infrastructure of trust, says Jamie Ward
