Max Keiser Advises El Salvador on Bitcoin Bonds
Max Keiser is no longer just a “Bitcoin Maximalist” on social media; he has taken on a new title that suggests a shift from online influence to real-world diplomacy: “Bitcoin Ambassador.” The broadcaster and financial commentator is now advising El Salvador’s government on a proposed $1 billion bond offering to fund the development of a “bitcoin city” and geothermal-powered mining operations.
Half of the bond proceeds are intended to purchase the cryptocurrency, with the expectation that the price will rise substantially to generate returns for investors. Keiser refers to bitcoin in the language of populists, calling it “unconfiscatable wealth” and a future global reserve currency. He typically presents these views on his show The Keiser Report, which airs on the Russian state-owned network RT. On that platform, he has frequently worn a tie emblazoned with bitcoin symbols.
A History of Contrarian Finance
The financial outlook for cryptocurrency has changed considerably since El Salvador adopted the asset as legal tender back in June. At that time, the price was near nearly $70,000. It has since dropped by nearly 50%, making it unclear if a volatile asset is the right choice to back a sovereign bond. Keiser has a colorful career that began in the 1980s as a stockbroker at Paine Webber and Oppenheimer & Co. He later co-founded the Hollywood Stock Exchange and a hedge fund called Karmabanque, which aimed to profit from shorting companies facing reputational damage.
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In media, he has presented The Oracle with Max Keiser for Al-Jazeera and anchored On the Edge for Iran’s Press TV. His public association with bitcoin began around 2013, when he interviewed George Galloway Jr. about using the currency to bolster the London economy. He also launched his own cryptocurrency projects called MaxCoin and StartCoin.
Keiser has often been aggressive in his rhetoric, describing JPMorgan as “the biggest financial terrorist on Wall Street.” CEO Jamie Dimon has since openly criticized bitcoin, calling it “fool’s gold.” Despite these clashes, Keiser managed to forge a relationship with the country’s leadership. Last year, he suggested the possibility of using bitcoin-backed bonds to shore up the poor country’s finances. He also expressed interest in obtaining citizenship in El Salvador.
It is difficult to separate the technical contours of this economic experiment from the political reality on the ground. While Keiser envisions a decentralized Shangri-La where fiat money fades away, the country’s political environment under President Nayib Bukele has drawn scrutiny from international observers who describe the atmosphere as resembling a nascent dictatorship rather than a democracy. The 40-year-old leader has fired the country’s top prosecutor and five high-ranking judges, replacing them with loyalists. Under his regime, the government has reportedly spied on dozens of journalists and human rights defenders.
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Advising the Bukele Government
Bukele has said he would listen to “the most qualified minds” in crypto to guide the country’s implementation. Keiser arrived in El Salvador earlier this month with his wife, Stacy Herbert, and met with Finance Minister Alejandro Zelaya, sparking curiosity about the nature of their discussions. The government has not detailed exactly how Keiser will contribute to the bond plan.
An earlier version of this story stated that Keiser was an official ambassador appointed by the president. Herbert has since clarified that this title is inaccurate. On his show, Keiser declared that “El Salvador will be able to pay off absolutely all of its foreign debt with bitcoin bonds.” Since that proclamation, the government has been pushing for the issuance of these instruments, potentially to pay down the country’s $23 billion national debt. When asked for further explanation, Keiser has not replied.
