El Salvador is still buzzing with bitcoin. Led by President Nayib Bukele, the Central American country is the one that is fully committed to BTC in politics as well. A new bill brings bitcoin government bonds a step closer.
BREAKING: 🇸🇻 El Salvador approves bill to enable launch of #Bitcoin bonds 🙌 pic.twitter.com/0OZ3TnBVZ0
— Wiser Miner | Bitcoin Mining Solutions (@WiserMiner) January 11, 2023
The bonds are not what you would expect from a government bond. In this case, they want to raise money with the so-called ‘Volcano Bond‘. El Salvador’s National Bitcoin Office announces the news.
The Volcano Bond is a nod to bitcoin mining on volcanoes. The ‘Digital Asset Issuance’ bill was passed and mote only be signed by Bukele.
It is also notable that Bitfinex is taking care of the technical matters for the bond. Ultimately, El Salvador needs to raise money this way to pay off national debts, invest in bitcoin and the country’s infrastructure, for instance. The goal? To raise as much as $1 billion. Half of that is meant for Bitcoin City, a special economic zone that has yet to take shape.
The interest rate on the bonds is 6.5%. That could be interesting for investors. At the same time, you then have to (partly) believe in Bukele’s plans. The country is taking a big risk with bitcoin.
At least the legal code in El Salvador seems ready for the next step. The question now is: when will bitcoin bonds hit the market?
Watch our documentary on the introduction of bitcoin in El Salvador below.
