Max Keiser On El Salvador’s Bitcoin Bank; 10X GDP Growth Is Likely

Max Keiser, a prominent Bitcoin advocate and advisor to the El Salvador President Nayib Bukele, has expressed strong optimism about the country’s economic future following new legislation that establishes a Bitcoin Bank.

According to the Bitcoin enthusiast, El Salvador will soon experience a massive shift in its economic outlook, based on the new development.

President Bukele hits ground running in new term with new legislation establishing a #BITCOIN BANK in 🇸🇻

– Borrowers can collateralize their pristine, no counter party risk #Bitcoin

Billions of #Bitcoin will flood into El Salvador upping GDP

🇸🇻 credit rating hits IG within 24… https://t.co/1olq9OWy6k

— Max Keiser (@maxkeiser) June 14, 2024

El Salvador Bitcoin Bank Legislation

As per the post on X by Keiser, President Bukele has started his new term with groundbreaking legislation to create a Bitcoin Bank in El Salvador. This bank will allow borrowers to use their Bitcoin as collateral, taking advantage of its pristine, no counterparty risk nature.

Keiser predicts that billions of dollars in Bitcoin will flow into El Salvador which will significantly boost the nation’s gross domestic product (GDP). He gave an optimistic forecast that El Salvador’s credit rating could reach investment grade (IG) within the next 24 months due to this influx of Bitcoin and the resulting economic growth.

Cathie Wood’s Growth Estimate

Significantly, Keiser also referenced the ambitious prediction of Cathie Wood for a ten times GDP growth in El Salvador over the next five years, stating that this scenario has now become much more likely. The Ark Invest CEO had praised President Bukele for its leading role in BItcoin adoption which she feels strongly is positively impacting the country’s economy.

As per data from the World Bank, El Salvador’s GDP has recorded a 30% growth since President Bukele took over the office in 2019. As at 2022, the gross domestic product figures stood at $32.4 billion.

El Salvador’s Strategy

As part of its strategy to grow the country’s economy, El Salvador had in December 2023 through legislation offered citizenship to any foreign investor with notable Bitcoin holdings. According to details of the legislation, such investors will avoid the regular naturalization processes as they are contributing to economic growth.

Analysts considered this a move to revive the declining crypto enthusiasm in the country as only a small fraction of citizens are actually holders of Bitcoin. They are also keen to observe how seamlessly the Bitcoin bank will operate in the coming days.