El Salvador has the potential to become the Singapore of the Americas, according to Gabor Gurbacs, a strategy advisor of investment management firm VanEck. In a recent post, Gurbacs mentioned that El Salvador could follow Singapore’s footsteps in becoming a financial center in the region. He believes that new capital investment and immigration will be key drivers of El Salvador’s economic growth in the coming years.
This perspective was shared in response to a post by Bitcoiner Max Keiser, who highlighted the benefits of living in El Salvador, including the country’s legal tender status of Bitcoin and the U.S. dollar, lower crime rates, beautiful beaches, and excellent coffee. Keiser, who currently resides in El Salvador and serves as the executive chairman of Volcano Energy, a Bitcoin mining operation in the country, has been a strong advocate for the potential of El Salvador’s economy.
El Salvador’s transformation into an emerging economy became more evident when Nayib Bukele assumed the role of president in 2019. The country’s sovereign bonds have outperformed many other emerging markets this year and gained the attention of large investment banks. Furthermore, Bukele’s government made Bitcoin legal tender in September 2021, and also launched a Bitcoin custodial wallet for the country’s citizens.
El Salvador’s commitment to Bitcoin extends beyond legalizing it as a form of currency. The country has also embraced Bitcoin mining, utilizing its volcanic resources to power mining operations. With a billion-dollar investment, El Salvador launched Volcano Energy in June 2022 and established a partnership with Bitcoin miners Luxor Technology in October.
To further boost its economy, El Salvador has also eliminated taxes on technology innovations, aiming to attract more entrepreneurs and foreign capital. The country’s efforts to leverage Bitcoin and promote technological advancements have positioned it as a potential hub for financial growth and innovation in the Americas.
Meanwhile, in another development, Sam “SBF” Bankman-Fried, the founder of FTX and Alameda Research, appeared in court this week to testify in his ongoing criminal trial. Bankman-Fried denied any wrongdoing between the two companies, acknowledging only “big mistakes” in their rapid growth. The highlights of his testimony include refuting claims of political donations and discussing Alameda’s role and hedging strategies. The trial is expected to continue with cross-examinations and closing arguments from both sides in the coming days.