Can El Salvador bridge the worlds of cryptoassets and investment arbitration?

Cryptoassets and investment arbitration are like different planets in distant galaxies, disconnected and oblivious of each other’s existence. However, El Salvador may prove to be what connects the two and potentially opens the door to cryptoasset-related investment disputes in the not-too-distant future.

El Salvador adopted Bitcoin as legal tender in September 2021. The President of El Salvador, Nayib Bukele, put out the call to investors to mine Bitcoin in the country and the government created a digital wallet (called Chivo) for people and companies in El Salvador to store and transact with Bitcoin and U.S. dollars. President Bukele has also shared plans and models for a coastal smart city, known as Bitcoin City, that will supposedly be funded by government-issued bonds.

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