Bitcoin bond will be launched soon
El Salvador is still considering launching its bitcoin bond between March 15 and March 20, according to a government official, however, the situation in Ukraine is a factor that might impact the schedule. The Bitcoin-backed bond will be used to support the country’s “Bitcoin City” and enable for additional Bitcoin purchases.
“We believe that between March 15 and 20 is the right timing, we have the tools almost finished. But the international context will tell us … I didn’t expect the war in Ukraine,” President Nayib Bukele told a local TV channel. “We’re still finishing some details, almost everything is ready, the thing is there is also a timing issue.”
El Salvador’s president, Nayib Bukele, stated last November that “Bitcoin City” will be built near the Conchagua volcano. Through geothermal energy, the volcano would be utilized to power the city as well as mine Bitcoin.
Around 20 bills relating to a Bitcoin bond were filed for El Salvador’s Congress on January 4. The Bitcoin-backed bond would be named as EBB1, and the government intends to issue $1 billion in Bitcoin-backed bonds, with half of the funds going toward Bitcoin purchases and the other half going into energy and mining infrastructure. The bond would be developed by Blockstream on the Liquid Network, a Bitcoin Layer 2 scaling solution.
El Salvador had purchased 1,801 Bitcoins at an average price of $49,100 apiece as of January 24. In September 2021, the country made Bitcoin legal tender, which drew controversy, in part owing to the country’s heavy-handed approach to the crypto rollout. Thousands of people protested in El Salvador, and the IMF has criticized Bitcoin’s legal tender as well as the planned Bitcoin bond.
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