El Salvador could see its gross domestic product (GDP) increase tenfold over the next five years if it stays with its Bitcoin 

and artificial intelligence adoption plan under Nayib Bukele’s presidency, says ARK Invest CEO Cathie Wood.

“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,” Wood said in a May 28 X post after meeting Bukele.

Bitcoin’s integration into capital markets, AI, and tax policies were the main topics discussed between Wood and Bukele.

Wood “walked us through the numbers” on how El Salvador can increase its GDP 10-fold to $300 billion by 2029, said Max Keiser, who advises Bukele on Bitcoin-related matters.

Bitcoin advocate Stacy Herbet, United States economist Arthur Laffer and ARK Invest research associate Marc Seal also attended the meeting.

El Salvador’s GDP was $32.4 billion in 2022 up over 30% since Bukele first took office in June 2019, according to World Bank data.

If it reached $300 billion, it would put the Central American country’s GDP roughly on par with Romania, the Czech Republic and Chile.

Since Bukele's first presidential stint, El Salvador made Bitcoin legal tender, eliminated taxes related to tech innovation and removed income tax for foreign investments and remittances in March.

In April 2024, Google officially expanded into the country under a $500 million strategic partnership.

El Salvador holds 5,764 Bitcoin in its treasury — worth $396.2 million — marking a 58.6% increase from its average purchasing price.

Bitcoin adoption among the local population arguably hasn’t been as successful.

A largely tech-illiterate population, lack of merchant enforcement and issues with the rollout of El Salvador’s Chivo Wallet in 2021 are among the most notable incidents that slowed progress, Jamie Robinson, the chief strategy officer of The Bitcoin Hardware Store told Cointelegraph in February.

In 2023, only 12% of the local population used Bitcoin at least once to pay for goods and services, down from 2022, according to a January survey by José Simeón Cañas Central American University.

Robinson noted Bitcoin’s upward price trend in early 2023 kickstarted a new wave of merchant adoption in recent months, which has been led by the likes of Walmart, Starbucks and Dominos.

Source