During the meeting, Wood and Bukele discussed Bitcoin’s integration into capital markets, tax policies, and AI. The ARK CEO also walked through the exact numbers to Bukele explaining how they can reach the desired GDP target.
After her meeting with El Salvador President Nayib Bukele on Tuesday, ARK Invest CEO Cathie Wood says that she’s very optimistic about the country’s future. Wood stated that El Salvador can see its GDP skyrocket by 10x in the next five years by 2029 if it sticks to its current Bitcoin and AI adoption plans.
In a post on the X platform on Tuesday, Wood wrote:
“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”.
During the meeting, Wood and Bukele discussed Bitcoin’s integration into capital markets, tax policies, and AI. Bitcoin maximalist Max Keiser who advises President Bukele on Bitcoin-related matters said that Wood walked through the exact numbers on how the Latin American country can increase its GDP by a massive tenfold to $300 billion by 2029.
The meeting was also attended by Bitcoin advocate Stacy Herbet, United States economist Arthur Laffer, and ARK Invest research associate Marc Seal.
The Rise of El Salvador in Bukele’s Leadership
As per the World Bank data, El Salvador’s GDP numbers back in 2022 stood at $32.4 billion, up by a strong 30% ever since Bukele took office in 2019. Thus, if it reaches a staggering $300 billion, it would put the Latin American nation’s GDP at par with the Czech Republic, Romania, and Chile.
During his first Presidential tenure, Nayib Bukele was swift in adopting Bitcoin as part of the country’s treasury. Despite much pressure from the IMF and other global institutions, Bukele stood his ground against all odds while making Bitcoin a legal tender. As of now, El Salvador holds 5,764 Bitcoins in its treasury worth nearly $400 million. The country is already sitting on 58.6% of its average purchase price.
He also introduced other key policies such as eliminating taxes pertaining to tech innovation as well as removing income tax for foreign investments and remittance in March. As a result of these policies, Google announced to set up its office in El Salvador past month in April, under a $500 million strategic partnership.
However, El Salvador has also been facing some hurdles when it comes to retail Bitcoin adoption. In February, Jamie Robinson, the chief strategy officer of The Bitcoin Hardware Store, highlighted several notable incidents that hampered progress in El Salvador’s adoption of Bitcoin, including a largely tech-illiterate population, lack of merchant enforcement, and issues with the rollout of the Chivo Wallet in 2021.
According to a January survey conducted by José Simeón Cañas Central American University, only 12% of the local population in El Salvador used Bitcoin at least once to pay for goods and services in 2023.