Nayib Bukele, the pro-bitcoin (BTC) political leader, has been re-elected to a new presidential term in El Salvador. A period in which his government may face challenges directly linked to the policy that revolves around digital currency in that Central American country.

In force since 2021, the Bitcoin Law, which granted legal tender status to Satoshi Nakamoto's invention, has served to deploy an entire policy around the asset and its technology.

For example, several laws tied to Bitcoin policy have been enacted. In addition, the Central American country has reservations expressed in BTC and even allows bitcoin entrepreneurs to access Salvadoran nationality.

Now, with another five years ahead, the new government of Nayib Bukele could face 3 major challenges around the bitcoin policy it is carrying out. What are they?

Bitcoin City, the Bukele government's bitcoiner project announced in 2021, is the main challenge facing the Salvadoran president in his new term. It so happens that since this city was first talked about more than two years ago, the project has not even reached gray work.

The creation of Bitcoin City depends, however, on one key fact: the success of the Volcano bonds.

These are the investment instruments that Bukele's government will launch – at some point – to finance its projects. According to the plans, the construction of the bitcoiner city will be financed with these bonds, which seek to raise USD 1,000 million.

Another major challenge that the new government of Nayib Bukele will face is the ability to demonstrate that a country can progress by implementing a policy based on bitcoin and its technology. Something that, to date, has not been reflected in a significant way.