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14/08/24
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Yilport’s $1.6 Billion Investment to Fuel El Salvador’s Bitcoin City Ambitions
Yilport Holdings, a Turkish port and terminal operator, has announced a significant investment of $1.6 billion for the development of two port projects in El Salvador. This represents the largest private investment in the country’s history and has the potential to realize the long-anticipated Bitcoin City initiative, which the government aims to establish as a cryptocurrency hub.
The announcement was made by Salvadoran President Nayib Bukele through a video on his social media account. Under the terms of the deal, Yilport and El Salvador’s Autonomous Port Executive Commission (CEPA) will work together in a joint venture to manage the Acajutla and La Unión ports for a period of 50 years. The La Unión port, which has been under construction since 2005 but has yet to open, is particularly linked to the proposed Bitcoin City.
Originally introduced in 2021, Bitcoin City aims to operate exclusively on Bitcoin and promises a tax-friendly environment, imposing only value-added tax. The Salvadoran National Bitcoin Commission has emphasized the connection between the port development and the Bitcoin City project, suggesting that this investment could signal increased interest in cryptocurrency-related ventures in the region.
Financing for the ambitious Bitcoin City was originally planned to come from a $1 billion bond, often referred to as the Volcano Bond. The bond was designed to utilize geothermal energy from local volcanoes to support Bitcoin mining. Although it overcame initial legislative hurdles in December, its launch has faced delays. Meanwhile, the partnership between Yilport and CEPA is set to advance, with significant infrastructure work, including dredging and equipment purchases, expected to commence by the year’s end.
This initiative marks a pivotal step for El Salvador, potentially reshaping its economic landscape and solidifying its position in the global cryptocurrency arena.
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