Key Points
- Cathie Wood anticipates El Salvador’s GDP could increase tenfold in five years through Bitcoin and AI adoption.
- Despite challenges, El Salvador’s President Nayib Bukele remains committed to integrating Bitcoin into the country’s economy.
Cathie Wood, CEO of ARK Invest, expressed optimism about El Salvador’s future after meeting with the country’s President, Nayib Bukele.
She believes if El Salvador continues its current trajectory of Bitcoin and AI adoption, it could see its GDP increase tenfold by 2029.
Wood’s Statement and Meeting Details
Wood shared her thoughts on a post on the X platform, crediting President Bukele’s determination to make El Salvador a hub for Bitcoin and AI communities as the reason for potential economic growth.
The meeting involved discussions about Bitcoin’s integration into capital markets, tax policies, and AI. Bitcoin maximalist Max Keiser, who advises Bukele on Bitcoin-related matters, suggested that Wood presented exact figures on how El Salvador could increase its GDP to $300 billion by 2029.
Other attendees of the meeting included Bitcoin advocate Stacy Herbet, United States economist Arthur Laffer, and ARK Invest research associate Marc Seal.
El Salvador’s Economic Progress Under Bukele
According to World Bank data, El Salvador’s GDP in 2022 was $32.4 billion, a 30% increase since Bukele took office in 2019. A GDP of $300 billion would put El Salvador’s economy on par with countries like the Czech Republic, Romania, and Chile.
During his first term, Bukele adopted Bitcoin as part of the country’s treasury despite pressure from global institutions like the IMF. El Salvador now holds 5,764 Bitcoins in its treasury, worth nearly $400 million.
Bukele also implemented policies to foster tech innovation, including tax exemptions and the elimination of income tax for foreign investments and remittances. As a result, Google announced plans to open an office in El Salvador in April.
However, El Salvador has faced challenges in retail Bitcoin adoption due to a largely tech-illiterate population, lack of merchant enforcement, and issues with the rollout of the Chivo Wallet in 2021. A January survey revealed that only 12% of El Salvador’s population used Bitcoin at least once for transactions in 2023.
