Cathie Wood, CEO of ARK Invest, believes El Salvador’s plan to embrace Bitcoin and artificial intelligence (AI) could result in a significant economic boom. Following a meeting with Salvadoran President Nayib Bukele, Wood stated her belief that the country’s GDP could increase tenfold by 2029, reaching $300 billion.
This optimistic forecast hinges on El Salvador’s continued commitment to integrating Bitcoin into its financial system and fostering innovation in AI. Discussions between Wood and Bukele centered on these topics, along with potential tax policies to support these initiatives.
El Salvador has already made strides towards Wood’s vision. Since President Bukele took office in 2019, the country has legalized Bitcoin as tender, eliminated taxes on tech development, and removed income tax for foreign investments and remittances. These moves have coincided with a 30% increase in El Salvador’s GDP.
Furthermore, a recent $500 million strategic partnership with Google signifies a growing interest in technological advancement within the country.
However, challenges remain. Bitcoin adoption among Salvadorans hasn’t reached the anticipated levels. A lack of technical literacy, inconsistent merchant participation, and issues with the government-backed Chivo Wallet have hindered progress.
Despite these hurdles, there have been positive developments. A recent price surge in Bitcoin has reignited merchant interest, with major brands like Walmart, Starbucks, and Dominos now accepting the cryptocurrency.
