Cathie Wood, CEO of ARK Invest, has lauded El Salvador for its progressive stance on Bitcoin and artificial intelligence (AI) adoption, suggesting that these initiatives could catalyze a tenfold increase in the country's gross domestic product (GDP) over the next five years under President Nayib Bukele's leadership.

In a recent X post following her meeting with Bukele, Wood expressed confidence in El Salvador's potential, stating, "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 the reason I believe that its real GDP could scale 10-fold during the next five years."

During the meeting, Wood and Bukele delved into discussions regarding Bitcoin's integration into capital markets, AI development, and tax policies. Wood, alongside Bitcoin advocate Stacy Herbet, US economist Arthur Laffer, and ARK Invest research associate Marc Seal, explored the transformative impact of these initiatives on El Salvador's economic landscape.

Max Keiser, who advises Bukele on Bitcoin-related matters, affirmed that Wood presented compelling insights on how El Salvador could achieve a GDP of $300 billion by 2029, representing a significant leap from its current GDP of $32.4 billion in 2022, as per World Bank data.

El Salvador's proactive approach to innovation has already yielded tangible results. In March, the country made headlines by legalizing Bitcoin as legal tender and implementing favorable tax policies to spur tech innovation. Furthermore, El Salvador's strategic partnership with Google, marked by a $500 million investment, underscores its commitment to fostering technological advancement.

Currently holding 5,764 Bitcoin in its treasury, valued at $396.2 million, El Salvador has demonstrated a steadfast commitment to cryptocurrency adoption. However, challenges such as a predominantly tech-illiterate population and issues with the rollout of the Chivo Wallet in 2021 have hindered widespread Bitcoin adoption among locals.

Despite these challenges, recent data suggests a resurgence in Bitcoin adoption, fueled by an upward price trend and increased merchant acceptance. Major retailers like Walmart, Starbucks, and Dominos have led the charge in embracing cryptocurrency payments, signaling a shift towards mainstream adoption.

As El Salvador continues to forge ahead with its ambitious Bitcoin and AI initiatives, the prospect of a tenfold increase in GDP stands as a testament to the transformative potential of innovative technologies in driving economic growth and prosperity.