There's more to the country than Bitcoin.
El Salvador has been in the news a lot over the last six months, thanks to its move to officially make Bitcoin legal tender. This has effectively placed the country on the map when it comes to investment opportunities, but the cryptocurrency isn’t the only worthwhile reason to invest in El Salvador.
DIVERSE ECONOMY
The service sector accounts for roughly 60% of the El Salvador economy, and the industrial base makes up a large proportion of the remaining percentage. These are two unsaturated markets, making them ripe for investment opportunities.
El Salvador is the only Central American country to adopt the US dollar as its official currency, which aligns it seamlessly with the States for trade opportunities. Due to the countries utilising the same currency, when exporting or importing goods between El Salvador and the USA, currency risk is eliminated. As well, the country benefits from a number of free trade zones, which provides tax break opportunities for investors. These are hugely appealing prospects, and they incentivize investment.
RENEWABLE ENERGY RESOURCES
It's clear that our planet is in a state of climate emergency. It’s our duty as a collective to pull together and do what we can to limit further harm to the environment, to counteract and reverse the damage that’s already been done. One of the biggest changes that can be made is the switch from non-renewable energy sources, such as fossil fuels, to renewables.
El Salvador is fortunate to have a wealth of renewable energy sources within its borders; the country benefits from quick and easy access to hydro, solar, wind, and geothermal powers, thanks to its natural resources. As well, El Salvador recently signed an agreement with the International Renewable Energy Agency (IRENA), pledging the country’s decarbonization in order to aid climate change reversal efforts. The country is aiming to prioritise renewables and encourage citizens to make the switch with reduced tariffs.
There has never been a better time to invest in renewable energy, and El Salvador is ripe with investment opportunities that benefit not only itself and its investors, but the planet as well.
GLOBALLY RECOGNISED WORKFORCE
El Salvador is one of the most densely populated countries in Central America, with more than 6 million residents. A large proportion of these are of working age, highly trained, and ready to employ. The efficiency and productivity of the El Salvador workforce is globally recognised, making it an appealing place to outsource work to.
The country’s labor laws work to protect employees against unfair treatment, and the employee-employer relationships in El Salvador tend to be strong. This makes for a more productive and fruitful work environment.
STRATEGIC LOCATION
Central America is exceptionally well placed, and any investors in El Salvador will be able to benefit from its location. There’s easy access to both North and South America for exports, imports, and trade, and it’s close to the Panama Canal, making shipping via the Pacific or Atlantic Oceans viable. This location is one of the most desirable, as so much of the world is within easy access of El Salvador’s shores.
BITCOIN
In the second half of 2021 El Salvador made the cryptocurrency Bitcoin legal tender. It was the first country to do so, and it garnered attention from all over the world. With Bitcoin no longer being a commodity of limited use, the investment opportunities in El Salvador are huge. The legalization of the currency opens the door to a number of new ways to invest and grow assets, compared with other countries.
It’s not just the legalization that’s inviting, either – El Salvador also has the ability to mine Bitcoin. Bitcoin City is due to be built at the foot of Conchagua volcano, with the aim being to use the volcano’s geothermal energy to mine the cryptocurrency. This means that not only can Bitcoin be used freely within the country, but that the country itself is expected to be rich with Bitcoin as well.
These are just a handful of reasons as to why El Salvador is a worthwhile country to invest in – they only scratch the surface of what the country has to offer. However, they give an introduction into the investment opportunities there. El Salvador has a lot to offer, and it’s exciting to see increasing numbers of people give it the attention it deserves; the country’s future is certainly going to be an interesting one to follow.
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