El Salvador plans to issue Bitcoin bonds and is cutting dollar-denominated bonds to all-time lows
El Salvador plans to issue Bitcoin bonds and is cutting dollar-denominated bonds to all-time lows.
The country’s commitment to bitcoin and blockchain technology in the financial system can be tricky for investors with a more traditional investment approach. As reported by Bloomberg, the country’s USD-backed bonds hit an all-time low after the President of El Salvador revealed plans for Bitcoin-backed bonds.
El Salvador’s USD bills with a maturity in 2050 fell to 64.4 – a new all-time low. The country’s debt was among the worst in the foreign debt market on Monday. The main reason for the rapid decline was President Bukele’s plan to sell Bitcoin Treasury bonds.
Much of the risk investors face comes from the unwillingness of the current El Salvador government to develop an appropriate relationship with the IMF. Bukele’s party fired five senior judges and the attorney general.
The modernization of El Salvador’s economy and the introduction of blockchain technology were not very welcomed by investors and residents, who repeatedly criticized the president’s decision.
According to Nathalie Marshik, CEO of Stifel Nicolaus & Co., the current decisions have moved the country further away from IMG’s policies, which already reflect the performance of the bonds. The expert also noted that investors could face further losses if the adoption of Bitcoin in the country intensifies.
Now this country’s debt is moving into an area that weighs on investors. El Salvador bonds need to rise 1,168 points to become more profitable than US Treasuries. At the same time, however, the government’s decision to issue crypto bonds could give the country a chance to get more money from investors willing to take more risks for bigger gains.
The majority of financial analysts agree on the uncertain future of the country’s economy and national debt, as the decision to raise money through crypto bonds is a sign of unclear strategic financial planning and a doubling of the economy.
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El Salvador plans to issue Bitcoin bonds and is cutting dollar-denominated bonds to all-time lows
El Salvador plans to issue Bitcoin bonds and is cutting dollar-denominated bonds to all-time lows.
The country’s commitment to bitcoin and blockchain technology in the financial system can be tricky for investors with a more traditional investment approach. As reported by Bloomberg, the country’s USD-backed bonds hit an all-time low after the President of El Salvador revealed plans for Bitcoin-backed bonds.
El Salvador’s USD bills with a maturity in 2050 fell to 64.4 – a new all-time low. The country’s debt was among the worst in the foreign debt market on Monday. The main reason for the rapid decline was President Bukele’s plan to sell Bitcoin Treasury bonds.
Much of the risk investors face comes from the unwillingness of the current El Salvador government to develop an appropriate relationship with the IMF. Bukele’s party fired five senior judges and the attorney general.
The modernization of El Salvador’s economy and the introduction of blockchain technology were not very welcomed by investors and residents, who repeatedly criticized the president’s decision.
According to Nathalie Marshik, CEO of Stifel Nicolaus & Co., the current decisions have moved the country further away from IMG’s policies, which already reflect the performance of the bonds. The expert also noted that investors could face further losses if the adoption of Bitcoin in the country intensifies.
Now this country’s debt is moving into an area that weighs on investors. El Salvador bonds need to rise 1,168 points to become more profitable than US Treasuries. At the same time, however, the government’s decision to issue crypto bonds could give the country a chance to get more money from investors willing to take more risks for bigger gains.
The majority of financial analysts agree on the uncertain future of the country’s economy and national debt, as the decision to raise money through crypto bonds is a sign of unclear strategic financial planning and a doubling of the economy.
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