El Salvador’s President Nayib Bukele, known for championing the recognition of Bitcoin as legal tender, has stepped down to focus on his 2024 re-election bid. The move, approved by the Legislative Assembly, led to the appointment of Acting President Claudia Rodríguez de Guevara, the country’s first female head of state, who is set to serve until June 2024. Bukele’s decision comes ahead of the general election in February 2024.

Bukele, who assumed office in June 2019, gained recognition for his efforts to reduce the country’s high homicide rate and his pro-crypto policies. In September 2021, he successfully advocated for the adoption of Bitcoin as legal tender and proposed the establishment of a ‘Bitcoin City’ powered by a volcano.

While Bukele’s tenure saw a significant drop in the homicide rate, critics have raised concerns about human rights violations in the government’s crackdown on gang activity. A March report from the United Nations human rights office highlighted “mass detentions” since 2022, resulting in mistreatment and deaths in custody.

El Salvador’s political landscape faces an interesting shift, with Bukele’s departure and the appointment of Acting President Rodríguez de Guevara. The country’s constitution, amended in September 2021, now allows presidents to seek two consecutive terms, overturning the previous ten-year waiting period for re-election.

As El Salvador navigates this political transition, the impact of Bukele’s pro-crypto policies and his ambitious initiatives, such as the Bitcoin adoption and ‘Bitcoin City,’ remains a topic of ongoing discussion.