Cathie Wood Predicts Tenfold GDP Growth for El Salvador via Bitcoin

El Salvador’s gross domestic product (GDP) could increase tenfold during the next five years of President Nayib Bukele’s administration, according to a forecast by ARK Invest CEO Cathie Wood.

Thank you @maxkeiser and Stacy for introducing Art Laffer, @dpuellARK, Marc Seal, and me to President Bukele last week. Harnessing #bitcoin and #AI to turbocharge his economic and education reforms, the President could scale El Salvador’s GDP 10-fold during his next 5-year term. https://t.co/7vjYwJ8mLe

— Cathie Wood (@CathieDWood) May 28, 2024

She highlighted that this growth would be driven by accelerating economic reforms in the country through the use of Bitcoin and artificial intelligence.

Wood also mentioned Bukele’s understanding of the Laffer Curve—a concept suggesting an optimal tax rate that maximizes revenue.

In February, the incumbent president won re-election, promising to maintain El Salvador’s Bitcoin strategy. In September 2021, the country became the first in the world to recognize the digital currency as legal tender.

Previously, the government highlighted the role of cryptocurrency adoption in helping the nation emerge from crisis and boosting tourism. The country attracted investments through the launch of “Bitcoin Freedom Visas” and announced plans to issue crypto bonds based on digital gold worth $1 billion.

“President Bukele’s determination to transform El Salvador into an oasis for Bitcoin and artificial intelligence communities (two of the greatest economic and technological revolutions in history) is why I believe its real GDP could increase tenfold over the next five years,” Wood stated after her meeting with the head of state.

However, she noted that the country’s economy is starting from a very low base: the annual GDP is approximately $30 billion, with a monthly per capita income of $450.

El Salvador has independently mined 473.5 BTC over three years, and the nation’s total cryptocurrency reserves have reached approximately 5748 BTC.