On April 14, a significant meeting took place at the White House as US President Donald Trump welcomed El Salvador’s President Nayib Bukele. The discussion primarily revolved around pressing issues of trade and immigration, notably sidelining Bitcoin, a pivotal topic for both administrations.
During this meeting, President Trump brought attention to pressing matters of migration and bilateral security cooperation. Bukele’s visit marked his first official engagement with Trump during the latter’s second term, and the absence of Bitcoin from public discourse was notable.
A livestream shared by Bukele’s office revealed that Trump proposed a controversial initiative to transfer US citizens convicted of crimes to prisons in El Salvador. He urged Bukele to expand his country’s prison capacity, noting, “I said homegrowns are next, the homegrowns. You gotta build about five more places.” This proposition is part of an ongoing trend as the Trump administration has already deported numerous foreign criminals to El Salvador under a $6 million bilateral agreement.
Additionally, President Trump addressed the ongoing trade war, hinting at potential measures to temporarily exempt automakers from tariffs. He acknowledged the need for the US auto industry to navigate supply chain transitions while grappling with the complexities of globalization.
Interestingly, discussions regarding digital assets and Bitcoin were absent from the agenda. Bitcoin, which El Salvador adopted as legal tender in 2021, remains a significant part of Bukele’s economic strategy. This initiative was echoed by Trump, who has positioned himself as a supporter of cryptocurrency leading into the 2024 election campaign.
In March, Trump signed an executive order to establish a Bitcoin strategic reserve and digital asset stockpile in the United States. The U.S. is reported to hold nearly 198,000 BTC, valued at over $17 billion, primarily acquired through seizures related to criminal cases.
El Salvador’s BTC Plans Confront IMF Scrutiny
Despite the optimism surrounding Bitcoin, El Salvador’s ambitions face challenges from the International Monetary Fund (IMF). In December, the nation entered into a $1.4 billion loan agreement with the IMF, which included stipulations to curtail Bitcoin-related initiatives and lessen public sector engagement with digital assets.
While the Salvadoran Congress amended its Bitcoin laws to comply with IMF requirements, the government has not halted its Bitcoin purchases. Current metrics from El Salvador’s National Bitcoin Office indicate that the country holds approximately 6,147.18 BTC, valued at around $520.7 million.
This juxtaposition of trade and immigration with a sidelined Bitcoin agenda highlights the complexities facing both presidents as they navigate domestic and international challenges. As both leaders continue to prioritize pressing economic and social issues, the future of Bitcoin in state policy remains uncertain.
