Bitcoin Integration: President Bukele and Cathie Wood Aim to Transform El Salvador’s Economy

• El Salvador’s President Nayib Bukele and Cathie Wood of ARK Invest have teamed up to explore the potential of Bitcoin.

• Cathie Wood highlighted the president’s vision of turning El Salvador into the Bitcoin and AI capital of the world.

The president of El Salvador, Nayib Bukele, He cooperated with Cathie Wood, CEO of ARK Invest, to explore the possibility of using Bitcoin to develop the country’s capital markets and advance the technology. Wood said El Salvador’s gross domestic product could increase tenfold over the next five years if the country persists in its aggressive use of Bitcoin and artificial intelligence (AI).

This partnership aims to establish El Salvador as a hub for blockchain and cryptocurrencies, which could attract international investors and contribute to the country’s development.

Integration of Bitcoin into capital markets

Cathie Wood also highlighted the president’s vision of turning El Salvador into the Bitcoin and AI capital of the world. Wood estimated that this strategy could increase the country’s GDP to $300 billion by 2029 from the current $32.4 billion in 2022. This growth will put El Salvador’s economy on par with Romania, the Czech Republic and Chile.

During his meeting with Bukele, Wood also discussed the adoption of Bitcoin in the capital markets, the possibilities of artificial intelligence technologies and the country’s tax system. Max Keizer, Bukele’s advisor on Bitcoin, said Wood offered insights into how these measures would lead to targeted economic growth.

Technological advances and tax reforms

During Bukele’s tenure, El Salvador made substantial progress in adopting Bitcoin as legal tender. In 2021, it made history by becoming the first country in the world to adopt Bitcoin as legal tender. Also in March, El Salvador eliminated taxes for technological development and foreign investment, thus encouraging greater economic development.

The government also attracted big bucks technological investments, including Google, which invested $500 million in the country’s expansion in April 2024. Currently, El Salvador’s treasury holds 5,764 BTC, which is equivalent to $396.2 million. This is a 58.6% increase over the country’s average purchase price, demonstrating that the country is willing to take advantage of Bitcoin’s capabilities.

Stimulate regional interest and regulatory cooperation

El Salvador’s proactive stance on Bitcoin sparked interest from neighboring countries. Recently, CNV officials visited El Salvador to learn about blockchain implementation and cryptocurrency usage domestically and internationally. CNV President Roberto E. Silva and Vice President Patricia Boedo stressed the need to draw lessons from El Salvador’s experience.

Furthermore, the partnership with the government of El Salvador and Bitfiinex represents an important step towards building the legal framework for cryptocurrencies. AS previously reported by Crypto News Flash, this partnership aims to create the right conditions for digital financial assets in El Salvador. Among the financial solutions being studied in the country is the new token bond issued for infrastructure projects.

The launch of the world’s first “Volcano Bond”, denominated in Bitcoin, is an example of the strategies used in El Salvador. This financial instrument seeks to use the economic value of digital assets to finance national development projects. This includes the construction of a new Hilton Hampton Hotel at El Salvador International Airport. As of this writing, Bitcoin is currently trading at $67,701.91, down 1% over the past 24 hours.

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