The future of El Salvador’s economy is bright with a Bitcoin-centric view

On June 1, President Naib Bukele began his second term in office at the National Palace in San Salvador, popularly consolidating his power and influence in El Salvador.

In his speech, the 42-year-old president promised to take decisive action to solve the economic problems of the Central American country. This pledge follows his earlier success in fighting gang violence during his first term in office.

How El Salvador's economy measures up with Bitcoin

Many Salvadorans are optimistic that he will fulfill his re-election promise to usher in a “time of prosperity” led by pro-Bitcoin policies. After recently meeting with Buckele, ARK Invest CEO Cathy Wood predicted that El Salvador's GDP could increase tenfold in the next five years due to their focus on Bitcoin and artificial intelligence.

“President Buckel's dedication to making El Salvador open to the bitcoin and AI communities – one of the greatest economic and technological revolutions in history – is the reason I believe the real GDP can increase 10-fold in the next five years,” Wood wrote.

Max Kaiser, President Buckele's senior bitcoin advisor, explained how the country will achieve this growth. It is El Salvador that operates on a circular Bitcoin standard with no debt and uses geothermal energy from volcanoes to generate 10% of the global Bitcoin hashrate.

“The country's wealth is controlled by Salvadorans who run their own Bitcoin nodes. Central banks will not have power, and the IMF will disappear for a long time, “Kieser added.

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Buckele has been called the “first president of Bitcoin” by many in the industry. In the year In 2021, the historic “Bitcoin Act” was passed, making Bitcoin legal tender. Since then, citizens have been able to use Bitcoin for goods, services and taxes. In addition, the country acquires major digital assets through a range of services, including a citizenship passport program, mining and government services that convert Bitcoin into US dollars for local businesses.

Already, Buckel's initiative has significantly boosted the country's economy, with BTC's treasury showing undisclosed gains of more than $70 million.

Indeed, other countries are taking notice of how to replicate this success. Last week, BeinCrypto reported that leading Argentine officials met with their Salvadoran counterparts to discuss Bitcoin regulation strategies for use in El Salvador.