El Salvador's Bitcoin Strategy Enters Election Turbulence

El Salvador's Bitcoin strategy is set to face one of its biggest challenges yet as the country approaches the February 2027 presidential election. The National Bitcoin Office has continued accumulating BTC, purchasing roughly one unit every day, bringing the total national holdings to around 7,725.37 BTC by July 27, up from 7,700 BTC a month earlier.

The opposition is lining up challengers for the upcoming election, with both candidates criticizing President Nayib Bukele's Bitcoin strategy as a fiscal failure rather than an economic success. The Nationalist Republican Alliance (ARENA) selected Maytee Iraheta and the Farabundo Marti National Liberation Front (FMLN) nominated Rafael Aguirre.

The government removed the legal requirement for businesses to accept Bitcoin after securing a $1.4 billion IMF loan agreement in February 2025, effectively restoring the US dollar as the sole mandatory currency for everyday transactions. Despite this change, the National Bitcoin Office continued purchasing BTC and increased the country's gold reserves in January.