El Salvador’s GDP could grow 10X with Bitcoin.

El Salvador could see an unprecedented economic transformation. According to Cathy Wood, gross domestic product (GDP) could increase tenfold in the next five years.

Wood is the founder and CEO of ARK Invest. She has made bold price predictions for Bitcoin (BTC) several times.

Kathy Wood explains why El Salvador's GDP could increase by 10X.

This bright forecast is focused on the country's continued adoption of Bitcoin and Artificial Intelligence (AI) under the leadership of President Naib Bukele.

“President Buccele's commitment to turning El Salvador into a hotbed for the Bitcoin and AI communities — the two biggest economic and technological revolutions in history — is why I believe the real GDP can increase 10-fold in the next five years,” said Cathy Wood.

Read more: Who will have the most Bitcoins in 2024?

El Salvador's economy currently has a GDP of nearly $30 billion, with an average monthly income of just $450. Recognizing the principles of the Laffer Curve—which suggest that lowering tax rates can increase tax revenue—the Buccele administration introduced higher tax incentives.

Therefore, these measures are designed to stimulate economic activity and attract international investment.

Additionally, the government has integrated ARK Educate's cutting-edge curriculum into the national education system. This includes topics such as robotics, energy storage, AI, blockchain and multiomics. Wood believes these initiatives are fundamental to Buckel's vision to transform El Salvador into a hub of technological innovation.

Moreover, in an initiative to promote transparency and investor confidence, El Salvador recently made Bitcoin investment information available to the public through a customized Mempool. This move strategically underscores the country's commitment to digital currency operations. Recent statistics show that El Salvador holds more than 5,764.75 bitcoins worth more than $391.36 million.

Moreover, the country highlights its innovative approach to sustainable cryptocurrency mining. Using geothermal energy from the Tecapa volcano, El Salvador has mined around 474 bitcoins since 2021.

Following Buccaneer's re-election, the administration is set to unveil plans to launch a tax-free zone and bitcoin bonds. International bodies such as the International Monetary Fund have criticized the decision to legalize Bitcoin, but the government has stood firm.

Read more: How Much Electricity Does Bitcoin Mining Use?

El Salvador's pioneering position has attracted the attention of major technology corporations. In particular, Google Cloud has announced a strategic partnership with the government to strengthen the country's digital infrastructure. This collaboration focuses on enhancing government services, healthcare and education with advanced cloud technologies and AI.