Last updated on May 31st, 2024 at 05:57 pm
ARK Invest CEO Cathie Wood has predicted that El Salvador’s gross domestic product (GDP) could increase tenfold over the next five years if it continues its Bitcoin and artificial intelligence adoption plan under President Nayib Bukele,
“President Bukele’s determination to turn El Salvador into an oasis for the Bitcoin and AI communities — two of the biggest economic and technology revolutions in history — is the reason I believe that its real GDP could scale 10-fold during the next five years,”
Wood wrote in a recent post on social media.
In the post, Wood outlined how El Salvador attained the ambitious goal of increasing its GDP to $300 billion by 2029. According to Wood:
“Currently, El Salvador’s GDP is at a low base, ~$30 billion, and the average income only $450 per month. President Bukele clearly understands the Laffer Curve, and Art Laffer can see many ways to build on the momentum his tax incentives have put in place”
Wood’s comments and predictions came after her meeting with Bukele and his team. Bitcoin advocate Stacy Herbert, U.S. economist Arthur Laffer, ARK Invest research associate Marc Seal, and Max Keiser, who advises Bukele on Bitcoin-related matters, were among the attendees. Keiser stated that Wood “walked us through the numbers.”
Wood reportedly discussed Bitcoin’s integration into capital markets, AI, and tax policies with Bukele
.@CathieDWood & @LafferCenter + Max & Stacy – discuss #Bitcoin &
AI opportunities in #ElSalvador with President @nayibbukele pic.twitter.com/XOwPWoKVFB— Max Keiser (@maxkeiser) May 28, 2024
El Salvador’s GDP was $32.4 billion in 2022, a 30% increase since Bukele took office in June 2019, according to World Bank data. If the GDP reaches $300 billion, it would be comparable to the economies of Romania, the Czech Republic, and Chile.
Under Bukele’s presidency, El Salvador has made Bitcoin legal tender and eliminated taxes related to tech innovation. In March, the country removed income tax for foreign investments and remittances.
Since 2021, El Salvador has been dollar-cost averaging into Bitcoin, with an average purchase price of $43,097 per BTC. With the cryptocurrency now trading above $62,000, the country has an unrealized profit exceeding $57.4 million on its Bitcoin holdings, according to the Nayib Bukele Portfolio Tracker website.
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