Gabor Gurbacs, a strategy advisor at VanEck, believes that El Salvador’s economy will grow significantly in the coming years due to new investments and an influx of immigrants.
He thinks that El Salvador can become a financial hub in the Americas, similar to Singapore’s status in Asia. Gurbacs shared this perspective in a post on October 28.
El Salvador’s Economic Growth Drivers
Gabor Gurbacs, a strategy advisor at VanEck, predicts that El Salvador’s economic growth will mirror what Singapore achieved in the late 1900s. He believes that new investments and immigration will play a vital role in this growth.
These insights come after Max Keiser, a U.S. broadcaster and Bitcoin enthusiast who now resides in El Salvador, encouraged people to consider the country as the “New Land of the Free.”
Keiser highlighted factors like Bitcoin and the U.S. dollar being legal tender, reduced crime, beautiful beaches, and excellent coffee as compelling reasons to take notice of this Central American nation.
I say often to portfolio managers and asset allocators that El Salvador has the potential to become the Singapore of the Americas. I expect continued increase in immigration to, capital investment in and overall growth in El Salvador. https://t.co/CmT554x12j
— Gabor Gurbacs (@gaborgurbacs) October 28, 2023
El Salvador’s economy has been gaining recognition as an emerging market, especially since Nayib Bukele became the country’s president in June 2019.
In 2023, El Salvador’s sovereign bonds have performed exceptionally well, delivering a remarkable 70% return by August. This outstanding performance has attracted the interest of prominent investment firms like JPMorgan and Eaton Vance.
The FIAT guys at @jpmorgan say El Salvador is finally “getting some credit”.
They are just catching up.
It will soon be: “Salvadoran bonds are now Investment Grade”.
You’ll see 😉 pic.twitter.com/6Z1r7iS9M4
— Nayib Bukele (@nayibbukele) May 9, 2023
El Salvador’s Bitcoin Initiatives
In September 2021, President Bukele and the El Salvador government made Bitcoin legal tender and introduced the Chivo Wallet, a Bitcoin custodial wallet for all citizens. They’ve also harnessed their volcanic resources to kickstart a Bitcoin mining venture called Volcano Energy, backed by a $1 billion investment, with Max Keiser as its executive chairman. They’ve recently launched their first mining pool through a partnership with Luxor Technology.
To bolster their Bitcoin efforts, El Salvador appointed Dr. Saifedean Ammous, the author of “The Bitcoin Standard,” as an economic advisor to the National Bitcoin Office in May. The country aims to use Bitcoin to reduce its debt in the next five years. In a bid to attract more tech entrepreneurs and foreign investments, President Bukele eliminated all taxes on technology innovations in April.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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