El Salvador's Constitutional Shake-Up: Bukele's Power Grab and Bitcoin's Enduring Future

Sweeping constitutional changes that have greatly affected its political system and strengthened its innovative Bitcoin approach have been passed by El Salvador. On August 1, 2025, the legislature, dominated by President Nayib Bukele's New Ideas party, voted to abolish presidential term limits, therefore enabling Bukele to pursue unlimited re-election. The presidential tenure was also increased from five years to six, and the need for a runoff election was deleted. Many view these reforms as consolidating Bukele's power; supporters contend for simplified government; critics voice worries about democratic backsliding and El Salvador joining a tiny number of countries with unlimited presidential terms.

Elimination of presidential term restrictions has major consequences for El Salvador's prominent Bitcoin policy. Having legalized Bitcoin in 2021 and consistently supported cryptocurrency projects, President Bukele is now positioned to offer ongoing policy stability and more fully realize his idea for transforming El Salvador into a top crypto hub. This constitutional change happens amid continuous modifications to the national Bitcoin policy, including fresh strategies for interacting with foreign institutions like the IMF. Recent data also point to the government's ongoing Bitcoin hoarding, which highlights the dedication to the cryptocurrency notwithstanding some contradicting formal statements.

Investors and analysts predict ongoing government Bitcoin accumulation and a continually friendly regulatory climate for cryptocurrencies under Bukele's long presidency. Domestically, these changes are seen as ensuring a steady trajectory for El Salvador's crypto-focused policies, hence rendering an immediate policy reversal very unlikely under Bukele's continued leadership. El Salvador's choice to eliminate presidential term limits not only solidifies Nayib Bukele's control but also sends a strong support for the ongoing and increased use of Bitcoin, hence strengthening the country's unique position at the crossroads of political influence and digital finance.