El Salvador Breaks Ground on Pacific Airport, but Bitcoin City Remains Unmentioned
Construction has officially begun on El Salvador’s Pacific Airport, a project that had long been associated with the ambitious Bitcoin City vision. However, during the launch event, one key detail was missing—there was no mention of Bitcoin City at all.
The country’s official press agency shared a video of the ceremony, showing President Nayib Bukele at the construction site, laying the foundation stone of what is expected to become a major air transport hub. While the project had been introduced under the larger Bitcoin City initiative, it seems to have taken on a life of its own.
A Project Years in the Making
Bitcoin City was first introduced in 2021 as a futuristic, tax-free enclave designed for global cryptocurrency enthusiasts. Not long after, plans emerged for an airport to facilitate travel to and from the city. However, the airport’s origins date back to 2018, long before Bitcoin became legal tender in the country. The design was developed by Mexican architect Fernando Romero and was always intended as a way to boost connectivity in the eastern region of El Salvador.
While some critics doubted the project would ever get off the ground, Bukele’s administration has now moved forward with construction. Speaking at the event, the President detailed the phased approach to the airport’s development. Initially, the facility will include two gates and be able to handle 300,000 passengers per year, with an expected completion date for phase one in 2027. Future expansions are set to increase capacity to 5 million annual passengers as additional gates are built.
Investment and Economic Impact
With an initial investment of $320 million, the government envisions the airport as a key driver of economic growth. Bukele stated:
“This airport is not just a runway. It is a gateway for development, tourism, investment, and economic growth. In the 10 years, we expect it to generate 50,000 jobs and a per annum GDP growth rate of 1.5%.”
In the short term, the President claimed that the project’s first phase will create 10,000 direct and indirect jobs, contributing an estimated $300 million in revenue within its first year of operation.
Bitcoin City—No Longer in the Spotlight?
Despite the airport’s early association with Bitcoin City, its absence from the conversation at the launch event did not go unnoticed. Previously, the two initiatives were presented as intertwined, but officials now appear to be treating them as separate projects.
A report from Spanish-language media outlet Criptonoticias noted:
“The government says that this aeronautical project, originally announced in 2018, will be operational within two years. The event marks a concrete step towards its realization. On the other hand, the vision of Bitcoin City – presented to great fanfare in 2021 – remains shrouded in uncertainty. To date, no clear deadlines or tangible progress have been outlined for the city, which was supposedly designed for bitcoiners.”
This shift raises questions about whether Bitcoin City is still a priority for the government or if it has been placed on the back burner.
A Regional Boost for La Unión
The airport is being constructed in La Unión, near the Conchagua Volcano, which had been a key element in the Bitcoin City proposal. The volcano was originally intended to host a thermal energy plant that would power Bitcoin mining operations, reinforcing the city’s self-sustaining vision.
Back in 2021, Bukele had promised that Bitcoin City residents would be exempt from income tax, property tax, and other levies, with VAT being the only form of taxation. However, with the lack of updates on the city’s development, many are left wondering whether those promises still stand.
For now, construction on Pacific Airport moves forward, but the fate of Bitcoin City remains uncertain.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
