El Salvador’s President, Nayib Bukele, has threatened members of Congress with troops, and fired Supreme Court magistrates and replaced them with judges who are favorable to him—but he continues to enjoy overwhelming public support.
But Bukele started negotiating with MS-13 as soon as he became President, according to another story in. During his first year in office, he didn’t have a majority in the Assembly, and for his fledgling party to win seats he needed the homicide rate to fall. “The big drops in homicides were never just the work of the government,” Verónica Reyna told me. “Bukele learned the lesson from what happened before. He closed ranks. No one had access to the prisons for a year and a half.
Uncharacteristically, the government did not attack the article when it came out. In June, 2022, Patrick Ventrell, the American Chargé d’Affaires, gave a press conference in San Salvador at which he said, “The best way for the government of El Salvador to show that it is serious” about fighting the gangs “is to extradite the most dangerous leaders.” Later in the summer, Bukele extradited two of them with little fanfare.
Hours after the incursion, Bukele received a text message from his former attorney Bertha Deleón. “You’ve gone too far,” she wrote. When he didn’t reply, she decided to tweet. His response was swift. “Delete this,” he told her. “You’re attacking us.” Deleón refused, and the government launched a smear campaign against her. She was a trending topic on Twitter for days, accused of protecting the gangs and of abetting criminals. People shouted at her on the street.
Bukele had assumed office saying that his relationship with the U.S. was “the No. 1 priority for us.” But the U.S. had a new President, and both countries had changed. “When we tried to normalize the relationship, he felt like we were pulling the rug out from under him,” the senior U.S. official told me. “We didn’t have the red carpets out, so he thought it was a deliberate attempt to embarrass him.
Bitcoiners are skeptical of governments and central banks, but their goal is the universal adoption of the currency, and they need more countries to follow El Salvador’s lead. Even so, some of them were troubled by its example. The rush to create the Bitcoin Law resulted in confusing provisions: one article mandates that all merchants accept bitcoin, but another seems to hedge on that requirement.
Bitcoin City would be an actual municipality, powered by the geothermal energy of a nearby volcano and funded by a new financial instrument called Bitcoin Bonds, or Volcano Bonds, which will pay yields tied to the sale of bitcoin. The issuance of these bonds, according to Bukele, would raise a billion dollars. The rush of investment would help fund schools, hospitals, and public works—in theory, at least.
The only member of the Bukele government willing to speak with me was the Vice-President, Félix Ulloa, Jr. He received me one morning at his official residence, in an upscale neighborhood of San Salvador. He sat in a high-backed wood chair with blue velvet trim. On the wall was a surrealist painting of Lady Justice, blindfolded, with her body floating in three unconnected pieces among the clouds.
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