As Bitcoin continues to gain widespread adoption, billionaire and Ark Invest CEO Cathie Wood in an intriguing projection has predicted that El Salvador’s Gross Domestic Profit (GDP) could increase tenfold in the next five years, which has since captured the attention of the global financial community.
Wood ascribes this outstanding potential growth to the nation’s unwavering dedication to incorporating Bitcoin and artificial intelligence (AI) into its legal and regulatory structure.
El Salvador’s Bitcoin And AI Adoption To Boost Country’s Economy
It is worth noting that the Central American country El Salvador has constantly acquired Bitcoin since the nation adopted the digital asset as a legal tender under the presidency of its current leader Nayib Bukele in 2021. Particularly, the Bitcoin Law, which was enacted in 2021, provided the structure that made this possible.
President Bukele faced criticism for this choice from political rivals, international organizations, and economists. However, he never backed down from his goal of making his nation a leader in the adoption of Bitcoin, even in the face of criticism.
With this move, El Salvador became the world’s first country to accept BTC as a legal tender. The goal behind the nation’s action is to encourage more financial innovation, facilitate more efficient remittance payments, and advance financial inclusion.
Currently, El Salvador’s BTC holdings boast about 5,748 BTC valued at a whopping $360 million at the current price of the coin. The country has since transferred a big chunk of its holdings to a cold wallet, which Bukele dubbed the nation’s first piggy bank, marking the first time such a move was made.
Given the country’s steadfast efforts to reclaim its communal identity in the crypto space, Cathie Wood, the CEO of Ark Invest, is confident that El Salvador’s GDP might grow tenfold by 2029. Wood believes this will happen as long as the nation sticks to Bukele’s agenda for embracing Bitcoin and AI. She further emphasized Bukele’s initiatives to transform El Salvador into an oasis for these technologies.
The CEO noted that since Bukele became the president, El Salvador has legalized BTC, eliminated taxes on technological innovation, and drawn large investments, including the $500 million strategic alliance with the world’s largest search engine, Google. Wood disclosed her projection after meeting with Bukele and Art Laffer to discuss potential investments in El Salvador. These include BTC and new capital markets, tech and innovation opportunities, AI, and Art Laffer’s favorite tax policy.
BTC Treasury Monitoring Website
Cathie Wood’s insight came a few weeks after El Salvador launched its BTC treasury monitoring website Bitcoin.gob.sv. Specifically, this proof-of-reserve website features various tools for monitoring the country’s BTC holdings utilizing on-chain data.
In addition to the nation’s BTC holdings, the website displays real-time information on the crypto asset’s blockchain network, such as transaction fees, mining difficulty, hash rate, and Halving, among others.
Featured image from YouTube, chart from Tradingview.com
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