Bitcoin in El Salvador: Volcanic Bonds Prepare to Rumble

Volcano Bond’s Next Eruption? – Just over two months after El Salvador made Bitcoin (BTC) legal tender, President Nayib Bukele has made a stunning new announcement about the city of the future: Bitcoin City. To finance it, there is talk of Bitcoin-based government bonds, and bonds dubbed volcanoes.

El Salvador first felt quake ahead of volcano bond issue

El Salvador’s bitcoin-based bond, originally scheduled to be issued in March 2022, has experienced a delay in firing. Then came Terra (LUNA)’s UST stablecoin disaster, then Celsius/3AC (Three Arrows Capital) disaster, and now FTX’s explosion.

Suffice to say, El Salvador’s issuance of a new type of government bond is complex given the context and state of the cryptocurrency market. Especially since they’re still $1 billion involved. Crucial financing, as the IMF (International Monetary Fund) withdrew its matching loan to El Salvador.

But, as Bloomberg special reports, Salvadoran Economy Minister Maria Luisa Hayem Brevé has finally submitted a bill to the Salvadoran Legislative Assembly on the issuance of Crypto assets. If passed, the law would pave the way for the long-awaited Bitcoin-backed volcano bond.

33 pages preparing for the advent of government crypto bonds

The 33-page legal text specifically calls for the establishment of a “Digital Assets Committee” and a “Bitcoin Fund Management Agency.” This is to oversee future government debt issuances based on crypto assets.

There is still talk of a $1 billion Volcano bond issue via the Liquid Network, a Bitcoin sidechain. The company behind the Bitfinex cryptocurrency exchange is expected to receive a license from El Salvador authorities to help it issue and list this “tokenized” sovereign debt.

“El Salvador Presidency Passes Digital Securities Bill to Lawmakers, Brings Country Closer to Raising $1 Billion in World’s First Sovereign Bond [basée sur]blockchain. »

El Salvador went a step further by issuing a Bitcoin-based volcano bond.@business twitter account

Despite the disastrous situation created by FTX and SBF in the cryptocurrency space, El Salvador seems to be holding its ground. The Central American country has not resold a single bitcoin. Even better, Media President Buckler recently announced that his country will now buy 1 BTC per day.

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The article Bitcoin in El Salvador: Volcanic Bonds Prepares to Rumble appeared first on Journal du Coin.

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