El Salvador has secured a historic $1.6 billion investment from Turkey’s Yilport Holding to advance its Bitcoin City initiative, marking a pivotal moment for the country’s crypto-economic ambitions. President Nayib Bukele announced the partnership, which will modernize key seaports and lay infrastructure groundwork for the project.
Key Developments in the Investment
- Port Modernization: Funds will upgrade Acajutla Port (improving efficiency) and revitalize the underused Port of Union.
- Bitcoin City Foundations: Enhanced ports will support logistics for the planned crypto-powered metropolis.
- Largest Private Investment: The deal sets a record in El Salvador’s economic history, stemming from Bukele’s 2022 Turkey visit.
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Bitcoin City’s Strategic Importance
President Bukele first unveiled Bitcoin City in 2021, envisioning a tax-free hub funded by Bitcoin bonds. Despite delays due to market downturns, the project regained momentum in 2024.
Stakeholder Reactions:
- Max Keiser (Bitcoin Advisor): Celebrates the deal as a "foundation-solidifying" milestone.
- Elitsa Taskova (Nexo CPO): Highlights crypto’s role in fostering "unlikely but lucrative global partnerships."
El Salvador’s Bitcoin Reserves
The government’s DCA strategy (1 BTC/day) has amassed 5,840 BTC (~$343 million). Transparency is ensured via the Bitcoin Office’s Mempool.
FAQs
Q: What is Bitcoin City?
A: A planned tax-free zone powered by geothermal energy and Bitcoin, designed to attract crypto businesses and investors.
Q: Why did Yilport invest in El Salvador?
A: The partnership aligns with Turkey’s Latin American expansion since 2016 and reflects confidence in Bukele’s economic policies.
Q: How does this impact Bitcoin adoption?
A: It signals institutional trust in crypto-centric urban development, potentially inspiring similar projects globally.