El Salvador has announced a $1.6 billion investment in its Bitcoin City, gaining new attention in the crypto world. Turkish company Yilport Holdings will put $1.6 billion into two ports at Acajutla and La Union, where Bitcoin City is planned. Crypto enthusiasts are calling this a Bitcoin City infrastructure investment, which will boost growth in the city. Turkish company Yilport Holdings will invest over $1.6 billion in El Salvador to upgrade two ports, including the area where Bitcoin City is planned. According to the country’s announcement on X (formerly Twitter), this is the largest private investment ever made in El Salvador.
President Nayib Bukele shared a video on X explaining the decision to the public. He said, “Yilport Holding Inc. will invest over $1.615 billion in the Pacific Port Union. We will modernize the port of Acajutla and finally activate the port of La Unión.”
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Bitcoin City’s Vision and Tax Incentives
This agreement stems from President Bukele’s visit to Turkey in 2022. It will create a mixed-ownership company between Yilport and CEPA to manage both seaports for the next 50 years. The investment will occur in phases, starting at the end of 2024. The final phase aims to enhance trade opportunities for El Salvador, beginning with the Pacific Port Union.
Bitcoin City, a planned smart city in La Union, El Salvador, is designed to be a tax haven and powered by geothermal energy for Bitcoin mining. Bukele has promised no income tax, property tax, procurement tax, city tax, and zero CO2 emissions. The only tax will be VAT, with half used for municipal bonds and the other half for city infrastructure maintenance. El Salvador utilizes volcanic power for Bitcoin mining and currently holds 5,839.76 Bitcoins worth over $348 million. Their online Bitcoin Treasury provides real-time updates on Bitcoin reserves.
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