ARK Invest CEO Cathie Wood expressed confidence in El Salvador’s Bitcoin and AI adoption plan, predicting it could boost the country’s GDP tenfold in the next five years. In a series of posts on X, Wood praised President Nayib Bukele’s initiatives to transform El Salvador into a hub for Bitcoin and AI, describing these as revolutionary economic and technological changes. This follows a meeting between Wood, President Bukele, Bitcoin advocate Stacy Herbert, U.S. economist Arthur Laffer, and ARK Invest’s Marc Seal to explore Bitcoin and AI opportunities in the country.

Key Points from Cathie Wood’s Remarks:

- Potential Economic Growth: Wood believes that El Salvador’s real GDP could increase tenfold over the next five years due to its focus on Bitcoin and AI.
- Supportive Policies: The country has made Bitcoin legal tender, removed taxes on tech innovation, and eliminated income tax on foreign investments and remittances.

Economic and Technological Advancements:

- Bitcoin Holdings: El Salvador holds 5,764 Bitcoin, valued at $396.2 million, marking a 58.6% increase over the average purchase price.
- Foreign Investment: Google’s $500 million strategic partnership in April 2024 is a testament to El Salvador’s growing appeal to international investors.
- Economic Growth: According to the World Bank, El Salvador’s GDP reached $32.4 billion in 2022, a 30% increase since Bukele took office in 2019.

Challenges and Prospects:

- Civilian Adoption: Despite institutional success, only 12% of the local population used Bitcoin in 2023, down from 2022, due to tech illiteracy, lack of merchant enforcement, and volatility concerns.
- Future Potential: Wood's optimism is supported by rising interest in AI-related cryptocurrencies, which surged 257% early in the year, and ongoing government efforts to boost crypto investments, such as the citizenship-by-investment initiative requiring a $1 million investment in Bitcoin or Tether.

In summary, while El Salvador has seen significant economic growth and foreign investment driven by Bitcoin and AI adoption, challenges remain in achieving widespread civilian adoption. Nonetheless, Cathie Wood’s forecast highlights the transformative potential of these technologies for the country’s economy.