El Salvador Secures $1.6 Billion to Kickstart Bitcoin City Plan
El Salvador has secured a landmark $1.6 billion investment from Turkey’s Yilport Holding to propel its Bitcoin City project.
President Nayib Bukele announced this strategic partnership, which will modernize two critical seaports in the country. Additionally, it will provide the necessary infrastructure for the ambitious project.
$1.6 Billion Investment to Modernize Ports, Kickstart Bitcoin City
In his X (Twitter) post, President Bukele revealed that Yilport Holding’s investment also marks the largest private investment in El Salvador’s history. According to Stacy Herbert, Director of El Salvador’s Bitcoin Office, the agreement is a direct outcome of President Bukele’s 2022 visit to Turkey.
Read more: Top 9 Crypto-Friendly Countries For Digital Assets Investors
Yilport Holding is a subsidiary of the Turkish conglomerate Yildirim Group. The company was established in 2011 to consolidate the Yildirim Group’s port and container terminal operations under one roof, and it expanded its reach into Latin America in 2016.
This agreement also marks the third phase of the government’s economic plan. The modernization efforts will commence with upgrades to the port of Acajutla, focusing on improving infrastructure and reducing response times.
This move will be followed by significant renovations at the Port of Union, which has been underutilized for over two decades. The enhancements are crucial as they form the backbone of the forthcoming Bitcoin City, a project central to Bukele’s economic strategy.
Max Keiser, Senior Bitcoin advisor to President Bukele, celebrated the announcement as a pivotal milestone for Bitcoin City. He also emphasized that this investment solidifies the city’s foundations and enhances El Salvador’s role in the global crypto stage.
“Bukele’s Turkey trip paid off bigly! Qatar on deck,” Keiser hinted.
This investment also draws attention to crypto industry players. Elitsa Taskova, Chief Product Officer (CPO) at crypto lending platform Nexo, sees this agreement showcasing the growing global interconnectedness fueled by cryptocurrency.
“This serendipitous link between a major Turkish company and a Latin American nation transcends classic structures of power and influence, instead building a new order – one of unlikely, but perhaps lucrative tandems. It appears in a world seemingly drifting apart, Bitcoin and crypto might be the force that brings us together,” she told BeInCrypto.
President Nayib Bukele previously announced the idea of Bitcoin City in 2021. Construction of this project will rely on funds from government-issued Bitcoin bonds.
Yet, the project faced multiple delays. Many attribute this postponement to the unfavorable market conditions following the peak of the bull market in November 2021.
However, in February 2024, amidst his presidential campaign, President Bukele revitalized his vision for Bitcoin City. Despite the lingering uncertainties about the project, El Salvador remains a staunch supporter of Bitcoin under Bukele’s administration.
Read more: Who Owns the Most Bitcoin in 2024?
Since the president implemented the Dollar Cost Averaging (DCA) strategy to buy one Bitcoin daily, the country has consistently purchased BTC regardless of market conditions. At the time of writing, El Salvador’s mempool shows that the government holds 5,840 BTC. With the current market price of Bitcoin, this amount is equivalent to approximately $343.31 million.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
