Now, El Salvador plans to issue Bitcoin bonds to build city infra

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Now, El Salvador plans to issue Bitcoin bonds to build city infra

 Now, El Salvador plans to issue Bitcoin bonds to build city infra
Image source: Open Studio,Shutterstock

Highlights

  • El Salvador is planning to issue Bitcoin bonds.
  • The Central American country would soon introduce 20 bills in this regard.
  • The government aims to issue the US$1 billion bond to build an entire city along the Gulf of Fonseca near a volcano.

After becoming the first nation to recognise Bitcoin as legal tender, El Salvador is mulling issuing Bitcoin bonds. The Central American country, led by its pro-Bitcoin President Nayib Bukele, is soon planning to introduce 20 bills in this regard.

The government aims to issue the US$1 billion bond or Volcano Bonds to construct an entire city along the Gulf of Fonseca near a volcano. Some of the funds raised from the debt would also be used to purchase more Bitcoins.

Last week, El Salvador's Finance Minister Alejandro Zelaya said: “(Issuing of bills) is to provide a legal structure and legal certainty to everyone who buys the Bitcoin bond.”

These bonds are expected to be issued this year. President Bukele also recently predicted that Bitcoin bonds would be oversubscribed. He also said that Bitcoin City would start construction this year.

El Salvador believes that being the first to open its doors to Bitcoin completely would boost its economy.

President Bukele is of the view that making Bitcoin a legal tender would inspire bitcoin investors to invest more capital in his nation. He even intended to use the energy from volcanoes to mine bitcoin utilising El Salvador's state-run geothermal utility.

Meanwhile, hundreds of El Salvadorians recently took to Twitter to report about missing Bitcoins from their government issued crypto wallet. The people claimed that Bitcoin had been vanishing mysteriously from their Chivo wallet - a crypto wallet designed for citizens to facilitate transactions in Bitcoin.

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