Bitcoin-Friendly El Salvador Poised to Become Financial Center of the Americas, Says VanEck Strategy Adviser

Adoption Bitcoin El Salvador Latin America Singapore USA
Last updated:
Journalist
Journalist
Sead Fadilpašić
About Author

Sead specializes in writing factual and informative articles to help the public navigate the ever-changing world of crypto. He has extensive experience in the blockchain industry, where he has served...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Source: AdobeStock / brizardh

Incoming investment capital and immigration will lead to a major economic shift that will turn El Salvador into a financial center, argued Gabor Gurbacs, strategy adviser of investment management giant VanEck.

Gurbacs tweeted that,

“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.”

In the 1990s, Singapore recovered strongly from the 1985-86 recession, in part thanks to the foreign direct investment (FDI)-led economic expansion in the Association of Southeast Asian Nations (ASEAN).

And over the past years, it emerged as a major crypto/blockchain/Web3 hub.

Singapore has also been named the preferred destination for crypto millionaires seeking secure and tax-friendly havens to protect their digital assets.

Even though Binance CEO Changpeng Zhao opined that the country’s approach to digital assets has become more “conservative,” particularly after the collapse of the FTX exchange, companies continue expanding and seeking business there. For example, in early October, Coinbase secured a full major payment institution license under Singapore’s Payment Services Act.

El Salvador Rising

Gurbacs’s tweet was a reply to a comment posted by Bitcoiner Max Keiser, calling for people to move to El Salvador.

Keiser called the Central American country “The New Land of the Free,” taking a jab at the USA.

Keiser lives in El Salvador, advises its president Nayib Bukele, and serves as the executive chairman of the Bitcoin mining operation startup Volcano Energy, which launched in June following a $1 billion investment.

How are this startup and Keiser’s connection to the President relevant?

In September 2021, El Salvador famously made Bitcoin legal tender, and it launched a custodial wallet called Chivo Wallet – both of which have since been heavily criticized.

Nonetheless, El Salvador pushed on with its Bitcoin plans, including creating a Bitcoin City and using volcanic resources to power the above-mentioned Volcano Energy.

Earlier this month, El Salvador announced the launch of Lava Pool, the country’s first Bitcoin mining pool powered entirely by renewable geothermal energy. It was a combined effort of Volcano Energy and tech giant Luxor Technology.

Meanwhile, Bukele formally filed for re-election in next year’s polls, a move critics say is against the country’s constitution.

Notably, as all of that was happening, El Salvador’s sovereign bonds yielded a 70% return by August.

Also, in September, the Ministry of Education started a pilot program to teach 150 public school teachers about Bitcoin. These teachers then returned to their schools across the country to transfer the knowledge to their students.

____

Learn more:

More Articles

Price Analysis
$TRUMP Pumping Over 20% This Week: Presidential Memecoin Back for Good?
Arslan Butt
Arslan Butt
2025-02-15 15:26:50
Price Analysis
Study Predicts Bitcoin Surge to $1M by Early 2027: Is That Possible?
Arslan Butt
Arslan Butt
2025-02-15 14:45:43
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors