How El Salvador Could Become the Singapore of the Americas with Bitcoin-Friendly Regulations

Crypto Economy and El Salvador

Gabor Gurbacs, strategy advisor of investment management firm VanEck, believes El Salvador can become a financial hub in the Americas, similar to what Singapore achieved in the late 1900s. According to Gurbacs, the key drivers behind El Salvador’s economic growth will be new capital investment and immigration.

In response to a post by United States broadcaster and Bitcoiner Max Keiser, captioned “Move to #ElSalvador, The New Land of the Free”, Gurbacs further discussed the potential of El Salvador’s crypto economy and AI technology. He suggested that with the right conditions, El Salvador could become a hub for crypto-related legal services, crime prevention, and the latest developments with AI startups.

El Salvador: Crypto Legal Tender and Economic Growth

Mike Keiser, who now lives in El Salvador, has identified several reasons why the Central American country should be on everyone’s radar: the legal tender status of Bitcoin (BTC) and the U.S. dollar, a decrease in El Salvadoran crime, great beaches and great coffee.

El Salvador’s economy has been further boosted with the appointment of Nayib Bukele as President in June 2019. This year, El Salvador’s sovereign bonds have yielded a remarkable 70% return by August, catching the attention of JPMorgan and other large investment banks.

In September 2021, Bukele and the El Salvador government took the next step in their economic growth by making Bitcoin legal tender. Additionally, they launched the Bitcoin custodial wallet, Chivo Wallet, to provide El Salvadorans with access to crypto.

Crypto Economy in El Salvador

El Salvador is taking advantage of its volcanic resources to power a Bitcoin mining operation startup, Volcano Energy, which was established in June with a $1 billion investment. Keiser is the executive chairman of the company.

In October, the first mining pool was launched as a result of the partnership with Bitcoin miners Luxor Technology.

In May, El Salvador appointed Dr. Saifedean Ammous, the author of “The Bitcoin Standard”, as an economic advisor to the National Bitcoin Office. The country has a plan to reduce its debt by accumulating Bitcoin within the next five years.

In April, President Bukele made a bold decision to eliminate all taxes on technology innovations, which could attract more entrepreneurs and foreign capital to the country.