According to PANews, El Salvador is set to receive significant infrastructure investments to support the construction of its ambitious 'Bitcoin City.' The Salvadoran government announced on Sunday that Turkish holding company Yilport will invest $1.62 billion in two of the country's seaports, marking the largest private investment in El Salvador's history. President Nayib Bukele stated in a video message on Monday that the investment will result in a joint venture between Yilport and El Salvador, which will operate the two seaports for the next 50 years. This agreement is a result of Bukele's 2022 visit to Turkey.
One of the ports, Acajutla, handles the majority of El Salvador's coffee, sugar, and balsam exports. The other port, La Unión, has been idle and neglected but is the planned site for Bitcoin City. Stacy Herbert, head of El Salvador's National Bitcoin Office, shared a statement highlighting that the project will create 'thousands of direct and indirect jobs' and lead to further investments in local infrastructure.
Bitcoin City was first proposed in November 2021 as a tax-free city funded by Bitcoin mining powered by local volcanoes rather than the civilian power grid. In May 2022, President Bukele shared potential architectural models for the city, but updates on the project have been sparse since then. The city was initially supposed to be funded through El Salvador's much-anticipated 'Bitcoin Bonds,' but fundraising efforts have faced multiple delays. Nonetheless, the country has secured alternative funding sources, including a renewable Bitcoin mining partnership with Tether and a 'freedom visa' program for wealthy Bitcoin users.