Trade and Immigration Take Center Stage as Trump & Bukele Discuss Future Relations

In a meeting focused on trade and immigration, US President Donald Trump hosted El Salvador’s President Nayib Bukele at the White House. The exchange steered clear of Bitcoin policy, highlighting a divergence in priorities between both nations. President Trump pressed Bukele to expand El Salvador’s prison system to accommodate more incarcerated individuals, suggesting the transfer of U.S. convicts to El Salvadoran prisons. This proposal was part of a wider conversation around migration and bilateral security cooperation that marked Bukele’s first official meeting with the White House during Trump’s second term. While trade agreements were discussed, President Trump also proposed temporary exemptions for automakers amid the ongoing trade war launched by his administration. The discussion on digital assets and Bitcoin remained off-limits, despite both presidents having a history of advocating for cryptocurrencies. El Salvador’s adoption of Bitcoin as legal tender in 2021 marked a significant development in the world of cryptocurrency. Both Trump and Bukele furthered their pro-crypto stance during election campaigns, with President Trump signing an executive order to establish a Bitcoin strategic reserve in the U.S., highlighting his commitment to the digital asset space. The meeting underscored a shift in focus from Bitcoin policy towards traditional economic partnerships, as El Salvador is now seeking IMF support for its plan to unwind Bitcoin-related initiatives and reduce public sector involvement with digital assets. However, Bukele’s government continues to purchase BTC on an ongoing basis. This suggests that the country may be prioritizing the immediate use of Bitcoin rather than a complete withdrawal from the crypto market.