Yilport Holdings, a prominent Turkish port and terminal operator, has pledged an unprecedented $1.6 billion towards the development of two port projects in El Salvador, marking the largest private investment in the nation’s history. This strategic investment is set to rejuvenate the ambitious plans for Bitcoin City in Central America.
Unveiling the Partnership
The groundbreaking deal was announced by Salvadoran President Nayib Bukele in a video on his X account. Yilport will collaborate with El Salvador’s Autonomous Port Executive Commission (CEPA) to manage the Acajutla and La Unión ports under a 50-year joint venture agreement.
Construction of La Unión port, which commenced in 2005, was never completed, with the site laying dormant as disclosed in Bukele’s video. This port is notably the designated location for the proposed Bitcoin City, a plan unveiled by Bukele in 2021 shortly after adopting Bitcoin as legal tender. This futuristic city is envisioned to operate entirely on Bitcoin and be free from all taxes, except for the value-added tax.
Linking Ports to Bitcoin City
The revival of La Unión port is seen as a catalyst for the Bitcoin City project. Senior Bitcoin adviser to Bukele, Max Keiser, emphasized the potential economic pull of the project with his remark on X, “Big money is ATTRACTED to BITCOIN COUNTRY.” Stacy Herbert, director of the National Bitcoin Commission Office, highlighted President Bukele’s efforts in revitalizing what had been abandoned in El Salvador, including the ports.
Bitcoin City was initially slated for funding through a $1-billion Bitcoin bond, famously known as the Volcano Bond, which was to be secured by mining Bitcoin using geothermal energy from extinct volcanoes. The technical aspects of the bond were to be supported by Blockstream and Tether-linked iFinex. Despite legislative approval, the bond’s launch was delayed beyond its expected timeline in the first quarter.
The collaboration between Yilport and CEPA is set to kickstart significant operational enhancements at La Unión port by the year’s end, including dredging and the acquisition of heavy machinery, setting the stage for the realization of Bitcoin City.
| Year | Event | Impact |
|---|---|---|
| 2005 | Initial construction of La Unión port | Project stalled, leaving the port incomplete |
| 2021 | Announcement of Bitcoin City | Proposed a new economic and infrastructure development model |
| 2024 | Yilport-CEPA $1.6 billion investment | Revitalization of port operations, enabling Bitcoin City |
| 2024 | Planned operational enhancements | Dredging and purchase of heavy equipment scheduled |
The substantial investment by Yilport Holdings in El Salvador’s port infrastructure is more than an economic booster; it’s a transformative endeavor that could make the visionary Bitcoin City a reality. As these projects unfold, they are expected to significantly impact the local economy and potentially set a precedent for cryptocurrency-driven urban development globally.
Featured image credit: Allexxandar via Freepik
Follow us for more breaking news on DMR