El Salvador's innovative approach to embracing Bitcoin and artificial intelligence (AI) could lead to a remarkable tenfold increase in its gross domestic product (GDP) over the next five years, according to ARK Invest CEO Cathie Wood. This ambitious prediction is based on the country's determination to become a hub for Bitcoin and AI communities, two of the most significant economic and technological revolutions in history.

Wood's statement came after meeting with President Nayib Bukele, where they discussed the integration of Bitcoin into capital markets, AI, and tax policies. Max Keiser, an advisor to Bukele on Bitcoin-related matters, revealed that Wood presented a detailed plan for El Salvador to achieve a tenfold increase in GDP, reaching $300 billion by 2029. This would put the country's GDP on par with that of Romania, the Czech Republic, and Chile.

El Salvador's GDP has already seen a significant increase of over 30% since Bukele took office in 2019, reaching $32.4 billion in 2022, according to World Bank data. The country's Bitcoin adoption and AI integration plans have the potential to further accelerate economic growth. Notably, El Salvador has made Bitcoin legal tender, eliminated taxes related to tech innovation, and removed income tax for foreign investments and remittances.

The country's Bitcoin treasury currently holds 5,764 Bitcoin, worth $396.2 million, marking a 58.6% increase from its average purchasing price. While Bitcoin adoption among the local population has faced challenges, including a largely tech-illiterate population and issues with the rollout of El Salvador's Chivo Wallet, there are signs of progress. Merchant adoption has increased, led by prominent companies like Walmart, Starbucks, and Dominos.

Wood's prediction is a testament to the potential of Bitcoin and AI to drive economic growth and transformation. If El Salvador succeeds in its ambitious plans, it could become a model for other countries to follow, showcasing the power of innovation and forward-thinking leadership in shaping a brighter economic future.