El Salvador’s GDP to Surge Tenfold in the Next Five Years: Cathie Wood

May 29, 2024

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Ark Invest CEO Cathie Wood has projected that El Salvador’s gross domestic product (GDP) could surge tenfold in the next five years if the country maintains its current trajectory with Bitcoin (BTC) and artificial intelligence (AI) adoption under the currency president, Nayib Bukele.

El Salvador’s Focus on BTC and AI Will Boost its GDP

According to a post on X, Cathie Wood praised El Salvador for its pioneering stance on Bitcoin, highlighting its role as a trailblazer in cryptocurrency adoption. According to World Bank data, El Salvador’s GDP was $32.4 billion in 2022, up over 30% since President Bukele took over the office in 2019. If it reached $300 billion, it would place the GDP of the Central American country at a similar level to that of Romania, Chile, and the Czech Republic.

In addition to its Bitcoin strategy, El Salvador embraces AI to enhance its economic prospects. Wood emphasized that this dual focus on Bitcoin and AI positions El Salvador as an “oasis” for technological adoption, setting a precedent for other countries to follow.

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Furthermore, Max Keiser shared his confidence in Wood’s forecast in a separate tweet. He trusts Ark Invest’s prediction that El Salvador’s GDP will surge from $30 to $300 billion over the next five years.

El Salvador Implements New Law

In December last year, El Salvador passed a new law to extend citizenship to foreign investors holding significant stakes in Bitcoin. This move, the first of its kind globally, showcases the country’s commitment to embracing digital innovation and attracting foreign investment in the burgeoning cryptocurrency space.

The law offers a pathway for foreign investors who contribute to El Salvador’s economy by investing in Bitcoin. Notably, the law had support from President Nayib Bukele’s New Ideas Party. However, there was no mention of a specific amount to be donated to qualify.

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With the new law, qualified investors would be exempted from the usual naturalization process. The immigration process includes a five-year residency for a person from a non-Spanish speaking country or two years if the person has a Salvadoran spouse.

El Salvador Push for Crypto Adoption

At the beginning of 2023, El Salvador introduced a legalization bill for digital assets after the proposal scaled through with 62 votes in its favor and another 16 against its implementation. At the time, the National Bitcoin Office (ONBTC) of El Salvador explained that the digital securities laws would usher in unprecedented consumer protection from bad actors.

Though El Salvador is involved in several pro-crypto initiatives, a survey revealed that the nation’s crypto enthusiasm is declining. Sadly, only a small percentage of its 6.36 million people own Bitcoin.