Bukele took the step in April of doing away with all taxes on technological advancements.
El Salvador may follow Singapore’s model and become a financial hub in the Americas.
Strategy consultant at investment management company VanEck, Gabor Gurbacs, believes that El Salvador may follow Singapore’s model and become a financial hub in the Americas.
Gurbacs on a twitter post stated:
“I say often to portfolio managers and asset allocators that El Salvador has the potential to become the Singapore of the Americas.”
New Land of the Free
Gurbacs predicts that fresh capital investment and immigration will be the key drivers of El Salvador’s enhanced economic development during the next few years, similar to what Singapore accomplished in the latter stages of the 1990s.
Moreover, his remarks are in reaction to a tweet by American journalist and Bitcoin advocate Max Keiser from October 28 with the title “Move to #ElSalvador, The New Land of the Free.”
Keiser, who relocated to El Salvador, argued that the Central American nation should be on everyone’s notice for a number of reasons, including the legal validity of Bitcoin and the U.S. dollar, a clean-up of Salvadoran crime, excellent beaches, and amazing coffee.
Also, after Nayib Bukele was elected president of El Salvador in June 2019, the country’s developing economy received greater attention. Sovereign bonds issued by El Salvador have beaten several other developing markets so far this year, with returns of 70% or more as of August.
Volcano Energy, which debuted in June after receiving a $1 billion investment, is one example of a company in El Salvador using the country’s volcanic resources to power its operations. Moreover, to encourage more entrepreneurs and international investment, Bukele took the daring step in April of doing away with all taxes on technological advancements.