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El Salvador Strengthens Its Global Crypto Position at Bitfinex Securities Day.
This Wednesday, El Salvador will host Bitfinex Securities Day, a key event aimed at bringing together investors and individuals interested in learning about the country’s growing financial market based on tokenization. The event is part of the broader Plan B El Salvador, a government initiative designed to position the country at the forefront of cryptocurrency and blockchain technology.
One of the major highlights of the event will be a panel discussion focused on the adoption of Bitcoin, with a special emphasis on El Salvador’s pioneering role. Industry leaders, including Excellion CEO, JAN3 CEO, and Jesse Knutson, Head of Operations at BFX Securities, will be sharing insights into the country’s journey and the broader implications for other nations.
The event will also dive into the evolving landscape of tokenized securities, particularly how Security Token Offerings (STOs) are creating new investment opportunities in El Salvador. Experts such as Jesse Knutson, Defilayyer, Csar Cordova from AC Dig, and Visotalk will break down the tokenization process, noting that in El Salvador, it can take as little as 2 weeks to 2 months to complete the tokenization process.
This event serves as a precursor to the highly anticipated Plan B El Salvador conference, one of the world’s most important Bitcoin conferences, taking place Thursday and Friday at the Sheraton Hotel and the MARTE Museum. As El Salvador continues to lead the charge in cryptocurrency adoption and innovation, events like Bitfinex Securities Day further solidify its position as a global hub for blockchain technology.
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A Historic Day for El Salvador: Political Debt Officially Abolished.
In a landmark decision, the Legislative Assembly of El Salvador has ratified a reform to the second paragraph of Article 248 of the Constitution, with 57 votes in favor. The reform, which was originally approved during the 2021-2024 legislature, marks a significant step toward the elimination of political debt in the country.
President Nayib Bukele celebrated the move, announcing on his official social media account that this reform represents the elimination of “political debt” as a historical sovereign debt for El Salvador. He reaffirmed the government’s commitment to ending the use of public funds for political party financing, a promise made to the people of El Salvador.
“We promised to eliminate the political debt,” President Bukele said. “The people complained to us that we had not yet fulfilled the promise. It took us a while, but we listened to the people, and today we are fulfilling our promise. No more financing of political parties with the people’s money.”
This reform is seen as a major victory in the ongoing efforts to reduce government spending on political activities and to ensure that public resources are used more efficiently for the benefit of the population.
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El Salvador Attracts New Foreign Investments from US, Germany, and South Korea in 2025.
El Salvador is poised to welcome a significant influx of foreign investments in 2025, with new companies from the United States, Germany, and South Korea set to establish operations in the country. Minister of Economy, María Luisa Hayem, recently highlighted the strong business climate and security improvements that are attracting global interest across various sectors.
“The arrival of international projects from countries like the United States, Germany, and South Korea is a testament to the favorable conditions for investment in El Salvador,” said Hayem. “Key sectors, including auto parts, textiles, tourism, finance, and food, are seeing growing interest.”
Hayem pointed out that advanced projects in the auto parts sector, as well as textile investments from South Korea, are already in progress. “We are very optimistic about the new investments, especially in the auto parts and textile industries, and we expect announcements in the near future,” she added.
Carmen Aída Muñoz, executive director of the American Chamber of Commerce of El Salvador (Amcham), also emphasized the role of the government’s business-friendly policies in attracting investment. “The positive business climate promoted by President Nayib Bukele’s government, along with incentives for private investment, is drawing the attention of large companies in technology, education, and tourism,” Muñoz stated.
Hayem also noted that her recent visit to Hamburg, Germany, allowed her to meet with German businessmen who are considering strategic projects that could have a transformative impact on the Salvadoran economy.
With an optimistic outlook for 2025, El Salvador is becoming an increasingly attractive destination for foreign investors seeking to tap into the country’s growing market and promising future.
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Ambassador Duncan: El Salvador’s Commitment to Combatting Drug Trade Benefits Entire Region.
The United States Embassy in El Salvador has praised the efforts of President Nayib Bukele’s government in the ongoing battle against organized drug trafficking. U.S. Ambassador to El Salvador, William Duncan, reaffirmed the country’s commitment to combating drug crime, emphasizing that the successes in security are beneficial not only for El Salvador but also for the wider region.
“El Salvador continues to consistently show its commitment to security and to the fight against organized drug trafficking groups. We will continue to applaud these successes that benefit our two countries and the entire region,” Ambassador Duncan stated.
The latest operation by El Salvador’s National Navy dealt a decisive blow to criminal networks. The Navy intercepted two Costa Rican fishing boats 300 nautical miles (556 kilometers) southwest of Bocana El Cordoncillo, in the Estero de Jaltepeque. The first boat, the White Shark X, was carrying 1.5 tons of cocaine, valued at approximately $39 million. The second boat, the Golfitin X, was found to be a refueling vessel.
A total of eight Costa Rican traffickers aboard the boats have been detained and will face justice. In the past year, El Salvador’s National Navy has seized a total of 22.6 tons of cocaine, with an estimated value of $565.2 million.
President Bukele, who continues to lead the country’s strong stance against drug trafficking, said, “God guides our plan,” as he reaffirmed the nation’s commitment to combating organized crime and strengthening security efforts.
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El Salvador: A Global Leader in Bitcoin Adoption, Says Max Keiser.
El Salvador has firmly established itself as a global leader in the adoption of Bitcoin (BTC), according to Max Keiser, a renowned Bitcoin expert and advisor to President Nayib Bukele. In a recent interview with Diario El Salvador, Keiser outlined the five stages of Bitcoin adoption and explained how El Salvador has progressed to the fourth stage, positioning itself as a beacon of innovation in the digital currency space.
Keiser’s framework for Bitcoin adoption includes the following stages:
- Discovery: Learning about Bitcoin.
- Opportunism: Recognizing Bitcoin’s potential, but still preferring local currencies.
- Payment Channel: Bitcoin used as an alternative payment system.
- Store of Value: Bitcoin recognized as a reliable store of wealth.
- Hyperbitcoinization: Bitcoin becomes the primary unit of account in a circular economy.
El Salvador’s Position: A Store of Value
Under President Bukele’s leadership, El Salvador is currently at the fourth stage—store of value—where Bitcoin is seen not only as a payment method but also as a way to protect wealth from inflation and volatility. This shift in perception marks a crucial evolution in how Bitcoin is integrated into the country’s economy.
Since 2022, El Salvador has maintained a strategic Bitcoin reserve, holding 6,048 BTC, which has yielded significant returns, with an unrealized gain of over $300 million, according to the National Bitcoin Office (ONBTC). Keiser highlighted that if the country maintains its position at this stage, it will remain a global leader in Bitcoin adoption.
Bitcoin Beach: A Step Towards Hyperbitcoinization
Keiser also pointed to the unique experiences of Bitcoin Beach in El Zonte and Bitcoin Berlin in Usulután, which he believes have already entered the fifth stage—hyperbitcoinization. In these communities, Bitcoin is not just a medium for transactions but the main unit of account, creating a local circular economy driven by digital currency.
Global Comparison: US and Silicon Valley
Keiser’s analysis also compared Bitcoin adoption across other countries, noting that U.S. President Donald Trump and some members of Silicon Valley are still at earlier stages. While Trump acknowledges Bitcoin, it is not yet central to his strategy. Some tech elites in Silicon Valley have embraced Bitcoin as a payment method but have yet to recognize its potential as a store of value, a key advancement already achieved in El Salvador.
The Path Forward for El Salvador
For El Salvador, Keiser emphasized the importance of not regressing to earlier stages, where Bitcoin is used only for payments. He stressed that continuing to treat Bitcoin as a store of value will position El Salvador at the forefront of Bitcoin adoption globally. Keiser believes that the country’s success could inspire others to adopt Bitcoin not just as a tool for payments but as a foundation for building more equitable, decentralized economies.
El Salvador’s journey towards hyperbitcoinization is well underway, and with consistent policy and commitment to Bitcoin, it could serve as a model for the future of global finance.
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Historic Center of San Salvador: $136 Million Investment and 2025 Growth Plans.
The Historic Center of San Salvador has seen significant growth in 2024, attracting $136 million in investment, particularly in private projects for restaurants, cafes, and gift shops. Adriana Larín, General Director of the Historic Center Authority, shared this achievement in a recent interview with the state channel.
Larín highlighted that 450 projects were processed through the one-stop shop, with 80 of them advancing to the execution phase. She also mentioned that the investment momentum is expected to continue, with $3 million estimated to be invested in January 2025 alone, a month which is expected to see over 1,000 user services.
The official also pointed out notable successes, such as the high demand for rooms at the newly opened Cardedeu Hotel and a 50% increase in sales at local restaurants in December. Additionally, the Llaollao store, a Spanish frozen yogurt franchise, reported the highest sales volume globally during the Christmas season. The store, which opened in November 2024 with an investment of $250,000, has quickly become a local favorite.
Construction has already begun on a new complex of five apartment towers near Parque Cuscatlán. These towers, developed by Grupo ECON and Inmobiliaria Puntto, are expected to offer 36 apartments per tower, with prices starting at $120,000.
Looking ahead to 2025, Larín revealed that more businesses are set to open in the Historic Center, including a new branch of Helados Sarita, Mayan Gifts, Café del Centro, and Wendy’s. In addition, the National Commission for Micro and Small Business (Conamype) will open an interactive art museum and craft sales store.
With over 1.4 million visitors recorded in 2024, the Historic Center Authority estimates that these investment projects will generate 16,000 direct and indirect jobs, contributing to the continued revitalization and economic growth of the area.
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El Salvador to Share Economic Growth Strategies at Panama’s International Economic Forum.
A high-level delegation from the Government of El Salvador will participate in the International Economic Forum Latin America and the Caribbean 2025, scheduled for January 29 and 30 in Panama City. The event, organized by the Andean Development Corporation (CAF), will bring together multilateral organizations, finance ministers, and key stakeholders to discuss pressing issues such as economic and fiscal reforms aimed at accelerating regional growth.
Minister of Economy, María Luisa Hayem, confirmed El Salvador’s participation and emphasized that the forum will serve as a valuable platform for the country to showcase its economic and social achievements. The delegation will include representatives from the office of the First Lady, Gabriela de Bukele, the Legislative Assembly, and the Ministry of Economy, who will highlight how their collective efforts contribute to the country’s economic growth.
“The inter-institutional delegation will present our progress, the milestones we’ve reached, and our future projects aimed at transforming El Salvador and improving the quality of life for our people,” Minister Hayem stated.
CAF highlighted that the forum will focus on promoting strategies to strengthen institutions, drive innovation and digitalization, transition towards green energy, develop strategic infrastructure, and create inclusive opportunities. These initiatives are key to overcoming current challenges and fostering a more resilient and dynamic economic environment in the region.
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Ministry of Agriculture Reports Major Increase in National Food Production.
The Government of President Nayib Bukele has made notable strides in boosting national food production, with over 1,000 blocks of land intervened as part of the agricultural recovery strategy. Oscar Domínguez, Vice Minister of Agriculture, reported that these efforts have led to the harvest of 27 different types of crops, prioritizing those most consumed in the country.
“The intervention of over 1,000 blocks has enabled the production of 27 types of crops, helping to address the nation’s food needs,” Domínguez shared on his official X account. He emphasized that this initiative is a key component of the government’s broader strategy to reduce dependence on food imports, which has had a positive impact on local food prices.
Domínguez also expressed support for purchasing certain foodstuffs under fair conditions but condemned the monopolistic and speculative practices that have historically disrupted the national market. “I will never be in favor of the dirty game that has been played for so many years. That game is over, and now everyone will play on the same field,” he stated, reinforcing the government’s commitment to fair market practices.
Currently, the Ministry of Agriculture and Livestock (MAG) is working closely with national producers to enhance their agricultural techniques and production levels, ensuring long-term sustainability and food security for the country.
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El Salvador’s Export Revenues Climb 72.3%
Coffee exports from El Salvador experienced a significant boost in the first quarter of the 2024-2025 cycle, with revenues soaring by 72.3%, according to the Salvadoran Coffee Institute (ISC).
From October to December 2024, export earnings totaled $15.66 million, up from $9.09 million during the same period in the 2023-2024 harvest—an increase of $6.57 million.
Export volumes also grew by 46.8%, rising from 40,944 quintals to 60,096 quintals. Additionally, the average price per quintal increased from $222.05 to $260.65, reflecting a $38.60 rise.
The primary destinations for Salvadoran coffee during this period were the United States (47.07%), Canada (7.94%), Italy (5.56%), and Saudi Arabia (5.40%).
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CABEI Raises Historic $2.9 Billion in 2024 to Boost Development Across Member Countries.
The Central American Bank for Economic Integration (CABEI) achieved a historic financial milestone in 2024, raising an impressive $2.9 billion to support the development of its member countries, including El Salvador. This significant amount comes as part of the bank’s updated financial strategy aimed at strengthening liquidity and continuing to foster regional growth.
CABEI raised $2.592 billion through the issuance of ten bonds across various formats, currencies, and markets. A major highlight of the year was the bank’s $1.35 billion global benchmark bond issue, marking the largest in its history. Additionally, CABEI reached new records in the capital markets of countries like Mexico and Costa Rica, raising 13 billion Mexican pesos and 88.3 billion Costa Rican colones, respectively.
In a bid to diversify its funding sources, CABEI also issued its first-ever bond in Indonesian rupiah and placed a 30-year bond, the longest in the bank’s history. The year also saw the launch of the bank’s inaugural Sustainable Bond Framework, which included an issue for 1.2 billion Turkish liras.
Furthermore, CABEI secured $329 million through bilateral loans and credit lines focused on sustainable projects and gender equity, collaborating with key partners such as the French Development Agency, Spain’s Official Credit Institute, and Germany’s KfW. The bank also finalized the signing of a $100 million syndicated loan in Asia through CTBC Bank of Taiwan.
Gisela Sánchez, Executive President of CABEI, emphasized that these remarkable figures demonstrate the bank’s position as a leading issuer in global capital and financial markets. “2024 has been a historic year for CABEI, showcasing our ability to innovate and adapt in a changing financial landscape,” she said. “This milestone will help optimize financial conditions for our member countries and drive progress on the sustainable development goals outlined in our Institutional Strategy 2025-2029.”
As CABEI looks ahead, it has already launched its 2025 fundraising plan with the issuance of a $1.5 billion Sustainable Global Bond, further solidifying its commitment to supporting development across the region.
