Uncovering the Enigma of Bitcoin City: El Salvador's Ambitious Crypto Utopia

This article is part of a four-part series exploring El Salvador. The previous installment, focusing on Bitcoin Berlín, can be found here. The concept of Bitcoin City evokes the notion of a modern-day El Dorado – a mystical, 21st-century paradise nestled in the jungle. First announced by President Nayib Bukele in 2021, the proposed metropolis is slated for construction at the base of the Conchagua volcano, with renderings from May 2022 depicting a circular design reminiscent of the Bitcoin logo, adorned in gold. During my visit to El Salvador, I sought to uncover signs of progress on this ambitious project. The journey to Conchagua, a four-and-a-half-hour drive from San Salvador, takes you to the easternmost part of the country, where the volcano stands majestically by the Gulf of Fonseca. From its peak, you can see into Nicaragua and Honduras, as well as several small islands. The scenery is breathtaking, but the climate is sweltering, with temperatures reaching 35 degrees Celsius during my late-January visit. According to Bukele's plans, Bitcoin City is oriented southeast, facing the water. However, Google Maps reveals no roads on that side of the volcano, only the Conchagua Forest and pristine beaches like Playa El Flor. I decided to visit the small village of Conchagua, located on the northern side. Upon arrival, I was struck by the village's charm, reminiscent of 1950s Portugal. Schoolchildren in uniform hurried through the streets, while colorful buses added a touch of vibrancy. The central square proudly displays the town's name in bold letters, with a white fountain and lingering Christmas decorations. A stunning white colonial church, dedicated to Santiago Apóstol, stands opposite the square. Completed in 1693, it is the oldest church in El Salvador and a treasured tourist attraction. Despite its beauty, the village seems untouched by time, and my presence drew curious glances. It's difficult to estimate the population, but I would be surprised if it exceeds a couple of thousand. Wikipedia estimates 37,400 people, based on a 2007 survey, but this figure applies to the entire municipality, including several surrounding villages. At the mayor's office, I met Margarito García, who has worked there for 15 years. When I inquired about Bukele's plans for Bitcoin City, García expressed skepticism, stating that there have been no signs of construction or government activity in the area. He mentioned that other tourists, including French and Slovak visitors, had also come searching for Bitcoin City. García views the attention as a positive for the local economy, citing the development of an airport near Loma Larga, about 30 minutes southwest of Conchagua. The Pacific Airport, proposed by Bukele in 2019, aims to boost tourism and alleviate congestion at the country's existing international airport. With a projected cost of $328 million, the airport is expected to serve between 300,000 and 500,000 passengers annually, with construction slated to begin in 2025. Bukele's vision for Bitcoin City includes an airport, port, rail services, commercial and residential zones, restaurants, and entertainment venues. Could the Pacific Airport be the first step towards realizing this ambitious project? It's possible. In 2021, Bukele outlined his plans for Bitcoin City, emphasizing its potential for mining, agriculture, culture, and sports, with a promise of no income tax, profit tax, property tax, hiring tax, or municipal taxes, and zero CO2 emissions. The city's primary power source is envisioned to be the Conchagua volcano's geothermal energy, a nod to environmental sustainability. Bukele announced that the construction of Bitcoin City would be funded through a $1 billion bitcoin-backed tokenized bond, known as the Volcano Bond, initially scheduled for issuance in 2022. Although the bond received regulatory approval in December 2023, the Salvadoran government has remained silent on the matter. When I asked Stacy Herbert, director of the Bitcoin Office, about updates on Bitcoin City and the Volcano Bond, she stated that the foundation has been laid, but there is no news on the launch. Determined to catch a glimpse of the Gulf of Fonseca, I attempted to drive up the volcano, despite the villagers' warnings that my rental car wouldn't make it. The dirt tracks and steep incline forced me to turn back, and I decided to head to El Zonte, four hours away, before nightfall. Assuming the Pacific Airport breaks ground in 2025, it will have taken six years from conception to construction. Bitcoin City, a far more complex project, may take even longer to materialize, if it happens at all. While there are no guarantees, El Salvador has surprised the world under Bukele's leadership before, and it wouldn't be wise to bet against it.