Cathie Wood, the CEO of ARK Invest, has expressed her optimism about El Salvador's potential for economic growth, citing the country's adoption of Bitcoin and artificial intelligence (AI) as key factors. According to Wood, if El Salvador continues on its current path, its gross domestic product (GDP) could increase tenfold over the next five years, reaching $300 billion by 2029.

Wood's comments came after a meeting with President Nayib Bukele, where they discussed the integration of Bitcoin into capital markets, AI, and tax policies. Max Keiser, who advises Bukele on Bitcoin-related matters, noted that Wood "walked us through the numbers" on how El Salvador can achieve this impressive growth.

El Salvador's GDP was $32.4 billion in 2022, up over 30% since Bukele first took office in June 2019. If it reaches $300 billion, it would put the country's GDP on par with that of Romania, the Czech Republic, and Chile.

Since Bukele's presidency, El Salvador has made significant strides in adopting Bitcoin and promoting tech innovation. In 2021, it became the first country to make Bitcoin legal tender, and in March 2024, it eliminated taxes related to tech innovation and removed income tax for foreign investments and remittances.

Google has also taken notice of El Salvador's potential, investing $500 million in a strategic partnership in April 2024. The country currently holds 5,764 Bitcoin in its treasury, 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, recent months have seen a new wave of merchant adoption led by major brands like Walmart, Starbucks, and Dominos.

Overall, Cathie Wood's optimistic forecast for El Salvador's economic growth highlights the potential benefits of embracing innovative technologies like Bitcoin and AI. As the country continues to navigate its unique approach to economic development, it will be interesting to see if it can achieve the ambitious goals set out by Wood and others.