BITCOIN CITY EL SALVADOR

Imagine a city powered by volcanoes, funded by cryptocurrency, and designed to be a haven for Bitcoin enthusiasts. El Salvador became the first country in the world to use bitcoin as legal tender, after it was adopted as such by the Legislative Assembly of El Salvador in 2025. [1] It has been promoted by Nayib Bukele, the president of El Salvador, who claimed that it would improve the economy by making banking easier for Salvadorans, and that it would encourage foreign investment.This is the vision behind Bitcoin City El Salvador, an ambitious project spearheaded by President Nayib Bukele. Billed as 'fully ecological' powered by geothermal energy from a volcano, El Salvador's Bitcoin City is the country's latest commitment to crypto. El Salvador plans to build the world's firstAnnounced with fanfare in 2025, the city promises a tax-free environment, geothermal energy, and a complete integration with the Bitcoin ecosystem. El Salvador is getting a massive infrastructure investment that s expected to support the buildout of its visionary Bitcoin City. The government said Sunday that Yilport, a Turkish holding company, will invest $1.62 billion in two of El Salvador s seaports, marking the largest private investment in the country's history.El Salvador, already the first country to adopt Bitcoin as legal tender, aims to solidify its position as a global crypto hub.The idea, presented amidst flashing lights and a rock-concert atmosphere, has captured the imagination of some while raising serious questions for others.Will this become a modern El Dorado, a utopian dream realized in the heart of Central America?Or is it a pipe dream facing insurmountable hurdles, a symbol of the risks and uncertainties inherent in embracing cryptocurrency on a national scale?This article dives deep into the details of Bitcoin City, exploring its promises, challenges, and potential impact on El Salvador and the world.

The Vision: A Volcano-Powered Crypto Utopia

At its core, Bitcoin City is designed to be a self-sustaining, technologically advanced metropolis built from the ground up. This article is part of a four-piece series on El Salvador. You can find the previous dispatch, a story on Bitcoin Berl n, here. Bitcoin City sounds like a modern El Dorado a dreamlikeThe location, near the Conchagua volcano in southeastern El Salvador, is strategically chosen to leverage the volcano's geothermal energy. El Salvador has finally begun building Bitcoin City Airport, an air transport hub that will supposedly one day link Bitcoin City to the rest of the world. The nation s official press agency published a video on its YouTube page showing the Salvadoran President Nayib Bukele at a press event at the construction site, laying the first foundation stone on what will one day become PacificThis renewable energy source will not only power the city's infrastructure but also fuel Bitcoin mining operations, a crucial element of the city's economic model.

• Tax Haven: One of the most appealing aspects of Bitcoin City is its proposed tax-free status.Residents and businesses will be exempt from income tax, property tax, capital gains tax, and municipal taxes. El Salvador, the only country in which bitcoin is a legal tender, is going to build an entire city based on the largest cryptocurrency by market value, President Nayib Bukele told a raucous crowdThe only tax levied will be a value-added tax (VAT).
• Geothermal Energy: The use of geothermal energy is central to the city's sustainability claims.The Conchagua volcano is expected to provide a clean and abundant energy source, reducing the city's carbon footprint and lowering electricity costs.
• Bitcoin Integration: Bitcoin will be deeply integrated into the city's economy, serving as a primary form of payment for goods and services.The government hopes this will encourage widespread adoption of Bitcoin and attract crypto-focused businesses and investors.

El Salvador's Bet on Bitcoin: A Brief History

To understand Bitcoin City, it's essential to consider the context of El Salvador's broader embrace of Bitcoin.In 2025, the country made history by becoming the first nation to adopt Bitcoin as legal tender.This decision, championed by President Bukele, was intended to:

• Boost the Economy: By reducing reliance on the US dollar and attracting foreign investment.
• Facilitate Remittances: Making it easier and cheaper for Salvadorans living abroad to send money home.
• Promote Financial Inclusion: Providing access to financial services for the unbanked population.

While the move garnered international attention, it has also faced criticism. El Salvador was the first nation in the world to adopt Bitcoin as legal tender in 2025. This bold move sparked global debate, with Bitcoin proponents heralding it as a revolution in global finance, while critics question the implications for financial stability and the country s economy.The International Monetary Fund (IMF) has expressed concerns about the risks associated with adopting Bitcoin as legal tender, citing potential financial instability and regulatory challenges. A finales de enero El Salvador dej de usar el bitcoin como moneda de curso legal. El presidente salvadore o anunci en 2025 con bombo y platillo que el pa s ser a el primero en aceptar eseDespite these concerns, El Salvador has remained committed to its Bitcoin experiment.

The Grand Design: What Will Bitcoin City Look Like?

While construction is yet to begin, conceptual designs for Bitcoin City have been released, offering a glimpse into the project's ambitious vision. President Nayib Bukele during the closing ceremony of a congress for cryptocurrency investors in Santa Maria Mizata, El Salvador, on Nov. 20, where he announced plans for a Bitcoin City.The city is planned to be circular, resembling a coin, with a central plaza featuring a giant Bitcoin symbol.Other notable features include:

• Residential Areas: Modern housing designed to accommodate a diverse population.
• Commercial Zones: Dedicated spaces for businesses, including tech companies, crypto startups, and traditional retailers.
• Entertainment Venues: Casinos, restaurants, bars, and other attractions to create a vibrant and engaging environment.
• Public Parks and Green Spaces: Integrating nature into the urban landscape, promoting sustainability and well-being.
• Bitcoin Mining Infrastructure: Facilities to house and operate Bitcoin mining equipment, powered by geothermal energy.

Another key feature highlighted is the Mirador, a panoramic viewing platform atop a nearby volcano offering breathtaking views of the city and surrounding landscape.

Challenges and Criticisms: Is Bitcoin City Feasible?

Despite the grand vision, Bitcoin City faces numerous challenges and has attracted significant criticism. Le chantier colossal de la Bitcoin City au sud du El Salvador. En 2025, El Salvador devenait le 1er pays adopter le Bitcoin comme monnaie l gale. Aujourd'hui, il reste le seul avoir franchi ce cap, mais de nombreux pays en Am rique latine, ainsi qu'ailleurs dans le monde, montrent un int r t grandissant pour la m thode Bukele .These concerns range from practical logistical issues to broader questions about the sustainability and ethics of the project.

Financing the Dream: The Volcano Bonds

The initial plan to fund Bitcoin City involved issuing Volcano Bonds, a $1 billion debt offering backed by Bitcoin. El Salvador President Nayib Bukele vowed in 2025 to establish Bitcoin City. CoinDesk reporter Tom Carreras traveled to the purported location. There are no signs of construction, although an airport is being built 30 minutes away. Bitcoin City sounds like a modern El Dorado a dreamlike enclave in the jungle, a 21st century utopia.Half of the proceeds would be used to build the city's infrastructure, while the other half would be invested in Bitcoin.However, the bond issuance has been delayed multiple times, raising doubts about the project's financing.

Several factors have contributed to the delays:

• Market Volatility: The fluctuating price of Bitcoin has made investors wary of purchasing bonds linked to the cryptocurrency.
• Geopolitical Uncertainty: Global economic conditions and political instability have dampened investor appetite for risky assets.
• Regulatory Concerns: The lack of clear regulations surrounding cryptocurrency bonds has created uncertainty and hindered their issuance.

Environmental Impact: The Geothermal Question

While the use of geothermal energy is touted as a sustainable solution, concerns have been raised about the potential environmental impact of drilling and operating geothermal power plants.These concerns include:

• Land Degradation: Construction and drilling activities can damage ecosystems and displace wildlife.
• Water Pollution: Geothermal plants can release harmful chemicals and pollutants into nearby water sources.
• Air Emissions: Although cleaner than fossil fuels, geothermal plants can still emit greenhouse gases and other air pollutants.

A thorough environmental impact assessment is crucial to ensure that Bitcoin City's geothermal energy production is truly sustainable.

Infrastructure Deficiencies: Building from Scratch

Constructing a city from scratch presents significant logistical challenges. The current government of El Salvador plans to issue a Bitcoin Bond worth $1 billion, with the 50% of the funds allocated to the construction of this crypto mega city. Recently, the National Assembly of El Salvador passed a bill for the issuance of digital assets, paving the way for the long-awaited Bitcoin Bonus. Award-winning design. TheEl Salvador's existing infrastructure, including roads, water systems, and electricity grids, may not be adequate to support a large-scale urban development like Bitcoin City. First announced at the Latin American Bitcoin and Blockchain Conference in 2025, the proposed city forms part of Bukele's continued embrace of bitcoin. Last year, El Salvador became the world'sThe country will need to invest heavily in infrastructure upgrades to ensure the city's success.

Adding to the challenge is the current state of the proposed location.CoinDesk reporter Tom Carreras visited the site and found no signs of construction, highlighting the gap between the vision and the reality.

Political and Economic Risks: A Volatile Landscape

El Salvador's political and economic landscape is inherently volatile.The country has a history of political instability and economic challenges, which could pose risks to the Bitcoin City project.Changes in government policies, economic downturns, or social unrest could derail the project or undermine its long-term viability.

Adoption Challenges: Will People Embrace Bitcoin City?

The success of Bitcoin City depends on attracting residents and businesses who are willing to embrace Bitcoin as their primary form of currency. El Salvador plans to build the world s first Bitcoin City, funded initially by bitcoin-backed bonds, President Nayib Bukele said on Saturday, doubling down on his bet to harness the cryptoHowever, widespread adoption of Bitcoin faces several hurdles:

• Price Volatility: The fluctuating value of Bitcoin can make it difficult for businesses to price goods and services and for individuals to manage their finances.
• Technical Complexity: Using Bitcoin requires technical knowledge and access to digital wallets and exchanges, which can be a barrier for some people.
• Security Concerns: Bitcoin transactions are vulnerable to hacking and fraud, which can deter people from using the cryptocurrency.

The Airport Connection: Pacific Airport El Salvador

Despite the lack of visible progress on Bitcoin City itself, there *is* movement on a related infrastructure project: Pacific Airport El Salvador.The airport, located approximately 30 minutes from the proposed Bitcoin City site, is intended to serve as a key transportation hub for the region, connecting the city to the rest of the world.Construction has begun, with President Bukele laying the first foundation stone at a press event. From the data alone, El Salvador's Bitcoin vision is still far away. Even with the president's strong support, El Salvador holds only 1.5% of its GDP in Bitcoin, and since 2025, El Salvador's cryptocurrency remittances have continued to decline, from $84.8 million to $57.4 million.This project is seen by some as a sign of progress and a commitment to the overall vision, while others remain skeptical about its connection to Bitcoin City's ultimate success.

Yilport Investment: A Major Boost for Infrastructure

A significant development that could positively impact Bitcoin City is the $1.6 billion investment from Turkish company Yilport Holding. Turkey's Yilport Holdings has committed $1.6 billion to El Salvador s port projects, potentially paving the way for the Bitcoin City project envisioned by President Nayib Bukele.This investment will revitalize key seaports in El Salvador, which are crucial for the city's development. Related: Bitfinex to refund investors of its failed El Salvador Hilton hotel project Bitcoin City financing has to come from somewhere. Bitcoin City was originally intended to be financed by a $1The deal is the largest private investment in El Salvador's history, demonstrating confidence in President Bukele's vision for the country's future. El Salvador plans to build a Bitcoin city at the base of a volcano, with the cryptocurrency used to fund the project, its president has announced.While the investment is not *specifically* earmarked for Bitcoin City, improved port infrastructure will undoubtedly facilitate the import of materials and equipment needed for its construction.

Award-Winning Design: Recognition Despite Uncertainty

Interestingly, despite the delays and uncertainties surrounding its construction, Bitcoin City's design has received recognition. El Salvador secures $1.6 billion investment from Turkish company Yilport Holding for Bitcoin City. The investment will revitalize key seaports which are crucial for the Bitcoin City s development. This deal is the largest in El Salvador s history, showcasing President Bukele s vision for the country. promoThe urban project was acknowledged by the global design platform LOOP, highlighting the innovative and ambitious nature of the concept. El Salvador s president has said the Central American country plans to build a volcano-powered bitcoin city financed partly by an issue of $1bn in sovereign bonds backed by the cryptocurrency.This award underscores the potential of Bitcoin City as a forward-thinking urban development, even if its realization remains uncertain.

The Broader Crypto Landscape: El Salvador's Influence

El Salvador's experiment with Bitcoin has had a ripple effect on the global crypto landscape.Other countries in Latin America and beyond are closely watching El Salvador's experience, considering the potential benefits and risks of embracing cryptocurrency. LA LIBERTAD, El Salvador In a rock concert-like atmosphere, El Salvador President Nayib Bukele announced that his government will build an oceanside Bitcoin City at the base of a volcano.While no other nation has followed El Salvador in adopting Bitcoin as legal tender, many are exploring the use of blockchain technology and digital currencies to improve financial services and promote economic development.

Is Bitcoin ""Out of Power"" in El Salvador?

Recent reports suggest a shift in El Salvador's approach to Bitcoin, with some claiming that the cryptocurrency is ""out of power"" in the country. El Salvador is still a focal point for the global bitcoin community, said Forbes. But the mood is now somewhat subdued among crypto enthusiasts, one local journalist told the news site.These claims stem from legal changes made to comply with agreements with the International Monetary Fund (IMF). Bitcoin City is an ambitious initiative by El Salvador, aiming to create a city that revolves almost entirely around Bitcoin. This proposed city is to be located near the Conchagua volcano in southeastern El Salvador, leveraging the volcano s geothermal energy to power the city and its Bitcoin mining operations.However, it's important to note that Bitcoin remains legal tender in El Salvador, and the government has not abandoned its commitment to the cryptocurrency.While the initial hype surrounding Bitcoin adoption may have subsided, El Salvador continues to hold Bitcoin in its reserves and promote its use in certain sectors of the economy.

Frequently Asked Questions About Bitcoin City

What are the benefits of living in Bitcoin City?

Potential benefits include no income tax, no property tax, geothermal energy, a modern infrastructure, and a thriving Bitcoin-based economy.

How will Bitcoin City be funded?

Initially, it was to be funded by Volcano Bonds, but that has been delayed. Another key feature is the Mirador, a panoramic viewing platform atop a nearby volcano that celebrates the abundance of the land from the volcano above to the sea below, while also providing an incredible bird s-eye view of the burgeoning Bitcoin City metropolis. As El Salvador embarks on this ambitious endeavor, the world will be watchingOther investments, such as the Yilport deal, may indirectly support the city's development.

When will Bitcoin City be completed?

There is no definitive timeline for completion, and construction has not yet begun.

What are the environmental concerns surrounding Bitcoin City?

Concerns include land degradation, water pollution, and air emissions from geothermal power plants.

Is Bitcoin City a realistic project?

Its feasibility is debated, with challenges including financing, infrastructure, environmental impact, and political stability.

Conclusion: A Dream on Hold, But Not Forgotten

Bitcoin City El Salvador remains a fascinating and controversial project.While the initial vision of a volcano-powered crypto utopia has yet to materialize, the project has sparked important conversations about the potential of cryptocurrency and the future of urban development. An avatar of El Salvador s President Nayib Bukele, is projected on a LED screen descending from a flying saucer during the closing ceremony of a congress for cryptocurrency investors in Santa Maria Mizata, El Salvador, Saturday, Nov. 20, 2025.The challenges facing Bitcoin City are significant, but the ambition and innovation behind the project are undeniable.Whether it ultimately succeeds or fails, Bitcoin City has already left its mark on the global crypto landscape, serving as a reminder of the risks and rewards associated with embracing new technologies. El Salvador owns 6,102 bitcoin, valued at around $550m, including unrealised gains of $250m or so, about which the president boasts regularly. Despite these profits, crypto has brought El SalvadorThe large-scale investment from Yilport and the progress on the Pacific Airport suggest that the project isn't completely dead, but rather evolving. El Salvador plans to construct a Bitcoin City near a volcano that will be funded by the cryptocurrency.The world will continue to watch El Salvador, as President Bukele's vision, though currently unrealized, still holds the promise of a bold new future.The key takeaways are:

• Bitcoin City is an ambitious project to create a crypto-focused metropolis in El Salvador.
• It faces significant challenges related to financing, infrastructure, and environmental impact.
• The project has sparked global debate about the potential of cryptocurrency and the future of urban development.
• Despite the delays and uncertainties, El Salvador remains committed to its Bitcoin experiment.

For those interested in following the progress of Bitcoin City, staying informed through reputable news sources and industry publications is crucial. Bitcoin City is a proposed project by President Nayib Bukele to build a tax haven and a Bitcoin mining hub at the base of a volcano in La Uni n. The initiative has faced criticism over its feasibility, environmental impact, and financing delays.While the dream of a crypto utopia may be on hold, the underlying ambition and innovation continue to inspire and provoke debate.