El Salvador: The Emerging 'Singapore of the Americas' Fueled by Bitcoin Adoption
Summary:
El Salvador may become the 'Singapore of the Americas' in terms of financial centrality, says VanEck strategy advisor, Gabor Gurbacs. In light of increased capital investment and immigration, Gurbacs predicts growth for the country, a sentiment echoed by U.S. broadcaster, Max Keiser. Under President Nayib Bukele's rule, Bitcoin has become legal tender, and the Chivo Wallet Bitcoin custodial wallet was launched. The nation plans to use Bitcoin to eradicate its debt within five years.
There is potential for El Salvador to emulate Singapore in becoming a financial hub for the Americas, according to Gabor Gurbacs, strategy advisor at VanEck. Gurbacs further indicated potential economic growth resulting from an influx of capital investment and immigration, drawing a comparison with Singapore’s success in the 90s. His views coincide with a post by U.S. broadcaster and Bitcoin enthusiast, Max Keiser, praising El Salvador's highlights, such as its legal status for Bitcoin and U.S. dollar, crime reduction, and local attractions.
Nayib Bukele’s 2019 presidential appointment reinforced El Salvador’s position as a burgeoning economy. The significant performance of El Salvador’s sovereign bonds, yielding an impressive 70% return by August 2023, attracted the notice of financial giants JPMorgan and Eaton Vance among others.
In September 2021, under Bukele's leadership, El Salvador embraced Bitcoin as legal tender alongside the U.S. dollar, and simultaneously launched Chivo Wallet, a Bitcoin custodial wallet for citizens. The country is leveraging its volcanic resources to fuel a Bitcoin mining startup, Volcano Energy, backed by a billion-dollar investment. Max Keiser serves as its executive chairman, and saw the launch of its first mining pool in collaboration with Bitcoin miners Luxor Technology.
Dr. Saifedean Ammous, author of "The Bitcoin Standard", was appointed as an economic advisor to the National Bitcoin Office in May. El Salvador aims to accrue Bitcoin to alleviate its debt within a five-year timeframe. In an effort to draw in more entrepreneurs and foreign capital, Bukele enacted the removal of all taxes on technology innovations in April.
Published At
10/29/2023 3:26:59 AM
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