As reported by Cointelegraph, Turkish port and terminal operator Yilport Holdings has pledged an impressive $1.6 billion towards two port projects in El Salvador, representing the largest private investment in the country’s history. This move holds the potential to pave the way for the realization of the ambitious Bitcoin City in the Central American nation.
The announcement of this significant deal was made by Salvadoran President Nayib Bukele through a video posted on his X account. Yilport, in collaboration with El Salvador’s Comisión Ejecutiva Portuaria Autónoma (CEPA), will establish a joint venture to operate the Acajutla and La Unión ports for a period of 50 years.
According to President Bukele’s video post on X, although the construction of the La Unión port commenced back in 2005, it was never put into operation. This port is set to be the location of the proposed Bitcoin City. The unveiling of the Bitcoin City was first announced by Bukele in 2021, just a few months after declaring cryptocurrency as legal tender in El Salvador. This new urban development is envisioned to operate entirely on Bitcoin and enjoy tax exemption, with the exception of value-added tax.
The National Bitcoin Commission Office of the country was eager to highlight the link between the revival of the port and the Bitcoin City project. Max Keiser, senior Bitcoin adviser to Bukele, expressed this sentiment by posting on X, stating, "Big money is ATTRACTED to BITCOIN COUNTRY." Furthermore, Stacy Herbert, director of the Bitcoin Office, emphasized President Bukele’s efforts in revitalizing abandoned assets in El Salvador.
“President Bukele has rescued so much that had [been] abandoned in El Salvador.”
Initially, Bitcoin City was proposed to be funded through a $1-billion Bitcoin bond, also known as the Volcano Bond, with plans to harness geothermal power from extinct volcanoes to generate the energy required for Bitcoin mining to support it. Samson Mow, the chief strategy officer of Blockstream at the time, later departed from the company and established Jan3, which has pledged support for the development of El Salvador’s Bitcoin City.
Despite the Volcano Bond clearing legislative and regulatory obstacles in December, it failed to meet its anticipated first-quarter launch.
At present, the Yilport-CEPA project is projected to involve dredging and the procurement of heavy equipment at La Unión by the end of the year.
Comments