$1.6 Billion Port Investment Aims to Revive Bitcoin City in El Salvador

Yilport Holdings, a Turkish port and terminal operator, has announced an unprecedented $1.6 billion investment for two major port projects in El Salvador. This marks the largest private investment in the nation’s history and holds the potential to advance the long-discussed Bitcoin City initiative.

The Details of the Investment

The project involves a joint venture between Yilport and El Salvador’s Autonomous Port Executive Commission (CEPA) to manage the Acajutla and La Unión ports for a duration of 50 years. President Nayib Bukele shared this development through a video on his X account.

La Unión: The Future Site of Bitcoin City

Construction of La Unión port began in 2005, but the project was ultimately stalled. The proposed Bitcoin City is set to be located at this port site. The concept of Bitcoin City was first introduced by President Bukele in 2021, shortly after the cryptocurrency was recognized as legal tender in El Salvador. This city is envisioned to operate entirely on Bitcoin and would only be subject to value-added tax.

The National Bitcoin Commission Office is enthusiastic about the link between the port’s revival and the Bitcoin City ambition. Max Keiser, who serves as a senior Bitcoin adviser to Bukele, remarked, “Big money is ATTRACTED to BITCOIN COUNTRY.” Bitcoin Office director Stacy Herbert also commented on the revitalization efforts in the country.

“President Bukele has rescued so much that had [been] abandoned in El Salvador.”

Funding the Bitcoin City Initiative

The original financing strategy for Bitcoin City involved a $1-billion “Volcano Bond,” intended to generate mining energy using geothermal power sourced from dormant volcanoes. Technical support for this bond was expected from Blockstream and Tether-linked iFinex. Following Samson Mow’s departure from Blockstream, he established JAN3, a firm committed to facilitating the development of Bitcoin City in El Salvador.

Despite the Volcano Bond overcoming legislative and regulatory challenges in December, its anticipated launch in the first quarter was missed. However, the Yilport-CEPA project is progressing, with plans for dredging and heavy equipment acquisitions for La Unión expected by the end of the year.

For further insights into this project and the future of Bitcoin City, please refer to Nayib Bukele’s announcement.