Bitcoin-Friendly El Salvador Could Be the ‘Singapore of America’: VanEck Advisor
El Salvador could follow Singapore's lead and become a financial center in the Americas, said Gabor Gurbaks, a strategy consultant at the investment management firm VanEck.
“I often say to portfolio managers and asset managers that El Salvador has the potential to be the Singapore of America,” Gurbacs explained in an Oct. 28 X post.
Similar to what Singapore achieved in the late 1900s, Gurbach expects new capital investment and immigration to be the main drivers of El Salvador's increased economic growth over the next few years.
His comments followed those posted on October 28 by US broadcaster and blogger Max Keizer, who captioned it: “To #ElSalvador, the new land of the free.”
Keiser, who now lives in El Salvador, listed Bitcoin (BTC) and the legal tender status of the US dollar, El Salvador's cleansing of crime, great beaches and great coffee as some of the main reasons why everyone should be in the Central American country. Radar
I often say to portfolio managers and property seekers that El Salvador has the potential to be the Singapore of America. I expect a continued increase in immigration, capital investment and overall growth in El Salvador. https://t.co/CmT554x12j
— Gabor Gurbacs (@gaborgurbacs) October 28, 2023
El Salvador's status as an emerging economy was highlighted when Naib Bukele was appointed as the country's president in June 2019.
El Salvador's sovereign bonds outperformed many other emerging markets in 2023, posting a record 70% return in August 2023, attracting the attention of JPMorgan, Eaton Vance and other investment management firms.
The FIAT folks at @jpmorgan say El Salvador is finally “getting some credit.”
They are just catching up.
Soon to be: “Salvadoran bonds are now investment grade.
You will see pic.twitter.com/6Z1r7iS9M4
— Naib Bukele (@naibbukele) May 9, 2023
Bukele and the government of El Salvador made Bitcoin legal tender in September 2021, in addition to releasing the Chivo Wallet Bitcoin wallet for all El Salvadorans this week.
El Salvador is using its volcanic resources to generate energy, the launch of a Bitcoin mining operation that launched in June on the back of a $1 billion investment. Keizer serves as the company's chairman.
The first mining pool was launched in October in partnership with Bitcoin miners Luxor Technology.
RELATED: El Salvador's Bitcoin Strategy Revamps With Bear Market in 2022
In May, El Salvador appointed Dr. Saifedian Amos, author of “The Bitcoin Standard,” as economic advisor to the National Bitcoin Office. The country plans to collect bitcoins to clear its debt over the next five years.
Bukele took a bold step in April to eliminate all taxes on technological innovations – which could encourage more entrepreneurs and foreign capital to enter the country.
Magazine: What is it like to use Bitcoin in El Salvador?
