A country of Latin America is preparing for a crucial step in its economic transformation thanks to the largest investment in its recent history. a turkish company has committed USD $1.62 billion to modernize two key seaports, an agreement that is closely linked to his government’s plans to develop an innovative technological and economic project in the region.
The modernization of these ports will not only strengthen the nation’s logistics infrastructure, but will also be the platform that will allow such a project to finally take shape. This ambitious plan, announced in 2021, has been a central piece in the government’s commitment to technological innovation, and Turkish investment could be the definitive boost for its execution.
What is the futuristic city that will be built in Latin America with investment from Türkiye?
Bitcoin City is the name of the most ambitious project of the president of El Salvador, Nayib Bukele. It is a city planned to be built in the east of the Central American country, near the port of La Unión. According to the government, the city will be a tax-free paradise, where residents will not have to pay income, property or capital gains taxes. In addition, its development will be driven by Bitcoin mining, which will use geothermal energy generated by the region’s volcanoes.
The project was first unveiled in November 2021 and promised to be a global technology hub that would attract investors, entrepreneurs, and cryptocurrency enthusiasts. El Salvador has adopted Bitcoin as legal tender since September 2021, and Bitcoin City is a natural extension of this strategy, with the goal of turning the country into the crypto epicenter of Latin America.
Next to the Port of La Unión, the Port of Acajutla is the other strategic point in which the Turkish company will invest. Photo: Maritime World
How will Bitcoin City work and how will it benefit El Salvador?
Bitcoin City will be a city designed under cryptoeconomic principles and with a radically different tax model. The city will operate tax-free, except for VAT, which President Bukele says will attract technology companies and wealthy residents seeking a favorable tax environment. The energy that will power the city will come from renewable sources, specifically geothermal energy from nearby volcanoes, making it a sustainable and environmentally friendly project.
In addition, the implementation of Bitcoin mining within the city will be a fundamental pillar. The government of El Salvador has already announced key partnerships in the mining space, such as the collaboration with Tether, which will help finance the infrastructure necessary for mining operations. According to Max Keizer, a prominent proponent of the project, the modernization of the ports is an “infrastructure investment for Bitcoin City,” as it will facilitate the transportation and export of technological goods and services from this futuristic city.
Nayib Bukele visualizing a model of Bitcoin City. Photo: Expansion
The complications that Bitcoin City has suffered since its announcement
Despite the optimism surrounding the project, ‘Bitcoin City’ has not been without challenges. Since its announcement in 2021, the project has faced several postponements. The promise to finance the city through “Bitcoin bonds”, originally announced, has been repeatedly delayed, raising questions about the project’s financial viability.
Corbin Keegan, a US citizen who moved to El Salvador in hopes of being one of the first inhabitants of ‘Bitcoin City’, is still waiting for the project to move forward. Keegan moved to the La Unión apartment, where he built a small house with his own hands. Although the crypto city project has not started, his dream remains intact, and in the meantime, he lives exclusively using Bitcoin for his daily transactions.
The American moved to El Salvador hoping to be one of the first inhabitants of Bitcoin City. Photo: El Salvador.com.
