El Salvador Announces $1.6 Billion Investment to Launch 'Bitcoin City'

El Salvador has just reached a major investment deal, bringing the dream of a "Bitcoin City" closer than ever.

In an announcement on August 12, the government of El Salvador said that Turkish holding company Yilport will invest $1.62 billion in two national ports. This is the largest private investment in the history of the Central American country.

President Nayib Bukele shared a video on X, emphasizing:

"The project is a collaboration between Yilport and El Salvador, which will manage the two ports for the next 50 years. The agreement is the result of President Bukele's visit to Turkey in 2022."

Ülkemizin tarihindeki en büyük özel yatırım 🇸🇻🇹🇷 pic.twitter.com/2cmn8T3g5p— Nayib Bukele (@nayibbukele) August 12, 2024

The two ports in question are Acajutla, which handles the majority of Peru’s coffee, sugar, and balsamic salt exports; and the abandoned La Union port, which is located right where El Salvador’s Bitcoin City is planned to be built.

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Stacy Herbert, head of El Salvador’s National Bitcoin Office, said the new project will create thousands of direct and indirect jobs and spur investment in local infrastructure. Herbert’s husband, Max Keiser, who is also a member of the Bitcoin Office, hailed the deal as a major step forward for the Bitcoin City infrastructure. “Bukele’s visit has been fruitful,” he said. huge.”

🇸🇻EL SALVADOR: Economic Plan / Phase 3

➡️FOCUS: Logistics

➡️Begins with the largest private investment in the history of El Salvador: $1.6 BILLION

➡️Yilport Holding will invest into Pacific Port Union

➡️The agreement is a product of President Bukele's 2022 visit to Turkey https://t.co/5VgrMtco19— Stacy Herbert 🇸🇻🚀 (@stacyherbert) August 12, 2024

Bitcoin City was first proposed in November 2021 as a tax-free city that would rely on volcanic-powered Bitcoin mining instead of the grid. By May 2022, President Bukele had unveiled a potential architectural model of the city, but has not provided any updates since.

The Central American country from has long been planning to launch a “Bitcoin bond,” but attempts to raise funds have been thwarted several times. El Salvador has found alternative sources of funding, including a renewable Bitcoin mining partnership with Tether and a “visa-free” program for global citizens who agree to invest $1 million in the country.

There’s no question about El Salvador’s “all in Bitcoin” strategy, which legalized Bitcoin in 2021. According to the National Bitcoin Office website, El Salvador currently holds 5,840.76 BTC, worth about $345 million. The country continues to add 1 BTC to its portfolio every day.