Vaneck, one of the largest asset managers in the U.S., has commended President Nayib Bukele’s work in making El Salvador a better place, highlighting the inclusion of bitcoin policies in its administration strategy.
Matthew Sigel, Head of Digital Assets Research at Vaneck, qualified El Salvador’s turnaround following Bukele’s vision as Latin America’s ultimate comeback story. In a recently released report, Vaneck confirms that Bukele’s actions have improved the Salvadoran citizens’ quality of life and personal security.
In addition, Vaneck underscores the role of bitcoin adoption in the nation, even when only 8% of all Salvadorans have used bitcoin to make payments. “The integration of Bitcoin into daily life is creating a foundation for broader acceptance and innovation in financial technology,” Sigel stressed.
El Salvador bitcoin’s strategy, in addition to growing its reserves, valued at over $600 million in BTC, includes building the announced Bitcoin City and issuing the so-called Volcano Bonds, which have been delayed several times. However, Sigel sees this train of action as prudent, as the government is currently embroiled in negotiations with the International Monetary Fund (IMF).
Read more: IMF Urges El Salvador to Tighten Bitcoin Law and Strengthen Oversight
Bukele’s actions in El Salvador are not only limited to bitcoin and personal security. Vaneck stated that the leader is committed to tapping into the nation’s blocked mining resources. Bukele even invited Vaneck’s geologist to research the numerous gold deposits, described as the world’s “largest per capita and square mile.” These resources are currently blocked by law from exploitation. Still, Bukele has the political power and the will to reverse the “Law of Metalic Mining Prohibition” enacted in 2017 by the former government.
Sigel explained:
We believe Bukele’s bitcoin gambit can serve as a model of innovation, determination, and independence for the emerging world.
Vaneck acknowledged that this makes El Salvador a contrarian bet and a compelling investment opportunity.
