President Nayib Bukele began his second term in El Salvador with a commitment to tackle the country’s economic challenges head-on. On June 1, at the National Palace in San Salvador, the 42-year-old president vowed to usher in a new era of prosperity, fueled by his pro-Bitcoin strategies.
A Vision for Economic Transformation
Bukele’s second term comes with heightened expectations, particularly regarding his innovative use of Bitcoin to drive economic growth. ARK Invest CEO Cathie Wood has predicted that El Salvador’s GDP could increase tenfold within the next five years, thanks to Bukele’s focus on Bitcoin and artificial intelligence. “President Bukele’s determination to turn El Salvador into an oasis for the Bitcoin and AI communities — two of the biggest economic and technology revolutions in history — is why I believe its real GDP could scale tenfold during the next five years,” Wood stated.
Strategic Use of Bitcoin
El Salvador has seen substantial growth in its Bitcoin investments, currently holding over $70 million in unrealized profit. Bukele’s administration has integrated Bitcoin into various aspects of the economy, including making it legal tender in 2021 with the passage of the historic “Bitcoin Law.” This move allows citizens to use Bitcoin for goods, services, and taxes. Additionally, the government earns Bitcoin through a citizenship passport program, mining operations, and other services that convert Bitcoin to US dollars for local businesses.
Renewable Energy and Economic Independence
Max Keiser, a senior Bitcoin adviser to President Bukele, outlined a vision where El Salvador could achieve significant economic growth by operating on a circular Bitcoin standard with no debt. Keiser envisions the country generating 10% of the global Bitcoin hash rate using geothermal energy from volcanoes. “The country’s wealth will be controlled by Salvadorans running their own Bitcoin nodes. Central bankers will have no power, and the IMF will be long gone,” Keiser added.
International Interest and Influence
Bukele’s innovative approach has caught the attention of other countries. Recently, leading Argentine officials met with their Salvadoran counterparts to discuss Bitcoin regulation strategies used in El Salvador, exploring ways to replicate this success.
