Coin and AI use in El Salvador might boost GDP 10-fold
El Salvador's GDP might tenfold with Bitcoin and AI adoption, according to ARK Invest's Cathie Wood.
She termed the country an AI and BTC “oasis”.
If Nayib Bukele's Bitcoin and AI adoption strategy continues, ARK Invest CEO Cathie Wood thinks El Salvador's GDP may grow tenfold in five years.
In a May 28 X article, Wood said that President Bukele's desire to make the country an oasis for the Bitcoin and AI communities, two of the largest economic and technological revolutions in history, might tenfold GDP growth.
President Bukele's ambition to make El Salvador into an oasis for the bitcoin and AI communities—two of the largest economic and technological revolutions in history—is why I think its actual GDP might grow 10-fold in five years.
Wood and US economist Art Laffer met with President Bukele to discuss El Salvador investment potential. The discussion focused on Bitcoin's capital market adoption, AI, and tax policy.
Bitcoin supporter Stacy Herbert and ARK Invest research associate Marc Seal attended.
Wood posted on her X account that El Salvador's GDP is $30 billion and the average monthly salary is $450.
She said that President Bukele knows the Laffer Curve and Art Laffer can see several possibilities to expand on his tax incentives' momentum.
The Laffer Curve tax theory suggests an inverted U-shaped connection between tax rates and government tax income, according to Investopedia. The best tax rate for an economy is at the top of the inverted U.
World Bank statistics shows that the country's GDP was $32.4 billion in 2022, up 30% since Bukele assumed office in June 2019.
If this reached $300 billion, the country's GDP would match Romania, the Czech Republic, and Chile.
Introduce ARK Educate's tech innovation curriculum
Wood said that El Salvador's president jumped at the chance to introduce ARK Educate's curriculum on technology enabled innovation to schools. These include robots, energy storage, AI, blockchain, and multiomics.
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