President of El Salvador, Nayib Bukele, has announced a large-scale economic plan to support the construction of Bitcoin City.
The $1.6 billion private investment from Yilport Holding is expected to modernize the port of Acajutla and build a new port in La Union, where Bitcoin City is planned to be established.
The Largest Private Investment in El Salvador’s History
In a post on platform X on August 12, Bukele shared a detailed video about phase 3 of his government’s economic plan. According to the video, the plan focuses on logistics and starts with the largest private investment in El Salvador’s history.
Plan Económico / Fase 3: Logística
Economic Plan / Phase 3:
Logistics pic.twitter.com/2cmn8T3g5p— Nayib Bukele (@nayibbukele) August 12, 2024
Yilport Holding will invest over $1.615 billion in the Pacific Port Union, modernizing the Acajutla Seaport and eventually activating the La Union Seaport. This project had been neglected by previous administrations and has not been operational since it was built more than 20 years ago.
This agreement is seen as a result of President Bukele’s visit to Turkey in 2022. The deal will create a joint venture between Yilport and CEPA to manage both seaports for the next 50 years.
The investment will be carried out in phases, with the first phase beginning at the end of 2024.
Related: Donald Trump Advises the US Government Not to Sell Bitcoin
Bitcoin City in El Salvador
Bitcoin City is a planned smart city project in La Union, El Salvador. The city is intended to be a tax haven, utilizing geothermal energy to power Bitcoin mining.
Bukele promised that there will be no income tax, property tax, procurement tax, city tax, and no CO2 emissions. The only tax in Bitcoin City will be VAT, with half of the VAT revenue used to pay for the city’s bonds and the other half for maintaining public infrastructure.
El Salvador has been harnessing volcanic energy to mine Bitcoin. According to the country’s official website showing its Bitcoin reserves, El Salvador currently holds 5,839.76 Bitcoins worth over $348 million.
The country’s recently launched online Bitcoin Treasury provides real-time data on the nation’s Bitcoin reserves.
