El Salvador can follow Singapore's example and become a financial center in the Americas, according to Gabor Gurbacs, strategic advisor at investment management firm VanEck.
โI often tell portfolio managers and asset allocators that El Salvador has the potential to become the Singapore of the Americas,โ Gurbacs explained in an X publication of October 28.
Similar to what Singapore achieved in the late 20th century, Gurbacs expects new capital investment and immigration to be the main drivers of El Salvador's further economic growth in the coming years.
His comments follow an October 28 post by American broadcaster and Bitcoiner Max Keiser, which was titled "Move to #ElSalvador, the new land of the free."
Keizer, who now lives in El Salvador, listed Bitcoin (BTC) and the legal tender status of the US dollar, clean Salvadoran crime, great beaches and great coffee are some of the main reasons why the Central American country should be on everyone's radar.
I often tell portfolio managers and asset allocators that El Salvador has the potential to become the Singapore of the Americas. I expect a continued increase in immigration, capital investment, and overall growth in El Salvador. https://t.co/CmT554x12j
โ Gabor Gurbacs (@gaborgurbacs) October 28, 2023
El Salvador's status as an emerging economy became more prominent when Nayib Bukele was appointed appointed president of the country in June 2019.
El Salvador sovereign bonds have outperformed many other emerging markets in 2023, obtaining a surprising performance of 70% by August 2023, which caught the attention of JPMorgan, Eaton Vance and other investment management firms.
The FIAT guys in @jpmorgan They say El Salvador is finally โgetting some credit.โ
They're just catching up.
Soon it will be: โSalvadoran bonds are now Investment Grade.โ
You will see pic.twitter.com/6Z1r7iS9M4
โ Nayib Bukele (@nayibbukele) May 9, 2023
Bukele and the government of El Salvador made Bitcoin legal tender in September 2021, in addition to implementing a Bitcoin custodial wallet. Chivo Wallet for all Salvadorans in the same week.
El Salvador is also taking advantage of its volcanic resources to promote a Start of Bitcoin mining operation, Volcano Energy, which was launched in June thanks to an investment of one billion dollars. Keizer serves as executive chairman of the company.
Is The first mining pool was launched. following a partnership with Bitcoin miners Luxor Technology in October.
Related: El Salvador's Bitcoin Strategy Evolved With Bear Market in 2022
El Salvador appointed Dr. Saifedean Ammous, author of โThe Bitcoin Standardโ as economic advisor to the National Bitcoin Office In May. The country plans to accumulate Bitcoin as a strategy to clear its debt in the next five years.
Bukele also took a bold step to eliminate all taxes on technological innovations in April, which could attract more entrepreneurs and foreign capital to move to the country.
Magazine: What it's really like to use Bitcoin in El Salvador
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