El Salvador has officially started construction on Bitcoin City Airport, a project that is expected to connect Bitcoin City to the world. President Nayib Bukele attended the groundbreaking ceremony for the project, now known as Pacific Airport.

Bitcoin City’s Absence From the Event

Despite being expected to serve Bitcoin City – a tax-free financial hub for international Bitcoin players – the 40-minute event made no mention of the Bitcoin City project, much to the disappointment of many in the Bitcoin community.

In fact, plans for the airport date back to 2018, before Bitcoin City was announced in 2021 and before El Salvador recognized Bitcoin as a legal tender in September 2021. This raises questions about whether the two projects are still linked.

Airport Size and Development Plan

In the first phase, the airport will have two gates and a capacity of 300,000 passengers per year. The government aims to complete this phase by 2027. The airport will then undergo two expansion phases, increasing the number of gates to 10 and then 18, allowing it to handle a maximum of 5 million passengers per year.

The total initial investment cost for the project is $320 million. President Bukele affirmed that the airport will serve as an important gateway to promote tourism, investment and economic growth in El Salvador. He estimated that within 10 years, the airport will create 50,000 jobs and contribute 1.5% to annual GDP growth.

Economic Impact of the Project

Bukele said that the first phase of the project will create 10,000 direct and indirect jobs. He also predicted that the airport would generate $300 million in revenue in its first year of operation.

Bitcoin City – An Uncertain Vision

The event did not mention Bitcoin City, although the government has previously lumped the two projects together. According to Spanish media Criptonoticias, the government is currently focused on the airport, while Bitcoin City has no specific timeline or plans.

Initially, Bitcoin City was promised to be a city with no income tax, property tax, or local taxes, only a value-added tax (VAT). However, the actual progress of the project has not been made clear.

Despite this, Bukele continues to show his support for Bitcoin. Recently, the National Bitcoin Office of El Salvador purchased another 7 BTC at an average price of $94,050 per coin, indicating that the government remains committed to its Bitcoin investment strategy.

The airport project in the La Unión region may be the first step in the country's infrastructure expansion plans, but the fate of Bitcoin City remains a big question mark.