El Salvador has the potential to emulate Singapore’s success and emerge as a prominent financial center in the Americas, according to Gabor Gurbacs, a strategy adviser at the investment management firm VanEck.
Gurbacs expressed his optimism in an October 28 post on X (formerly Twitter), highlighting the country’s potential to follow in the footsteps of Singapore’s late-1990s economic transformation. He anticipates that increased capital investment and immigration will be key drivers of El Salvador’s economic growth in the coming years.
This assessment comes as a response to a post made by United States broadcaster and Bitcoin advocate Max Keiser on October 28. Keiser, who now resides in El Salvador, extolled the virtues of the country, emphasizing its use of Bitcoin as legal tender alongside the U.S. dollar, efforts to combat crime, stunning beaches, and exceptional coffee, positioning El Salvador as a destination worth considering.
El Salvador’s ascent as an emerging economy gained prominence following the election of Nayib Bukele as the country’s president in June 2019.
El Salvador’s sovereign bonds have outperformed many other emerging markets this year, boasting a remarkable 70% return by August. This impressive performance has garnered the attention of prominent financial institutions, including JPMorgan and other major investment banks.
President Bukele’s administration made waves in September 2021 by making Bitcoin legal tender and introducing the Chivo Wallet, a Bitcoin custodial wallet, for all Salvadorans.
Further solidifying its presence in the cryptocurrency world, El Salvador is harnessing its volcanic resources to fuel a Bitcoin mining venture called Volcano Energy, which kicked off in June after a substantial $1 billion investment. Max Keiser plays a pivotal role as the executive chairman of this endeavor.
In a collaborative move, El Salvador’s first mining pool was launched in partnership with Bitcoin miners Luxor Technology in October.
The country also appointed Saifedean Ammous, author of “The Bitcoin Standard,” as an economic adviser to the National Bitcoin Office in May. El Salvador’s strategy involves accumulating Bitcoin to reduce its debt burden over the next five years.
Furthermore, Bukele’s administration took a bold step in April by eliminating all taxes on technology innovations, a move designed to attract more entrepreneurs and foreign capital to the nation. This progressive approach reflects El Salvador’s commitment to positioning itself as a burgeoning economic powerhouse in the Americas.