Bitcoin is becoming increasingly important in El Salvador. One Reuters report According to Congress, there are around twenty bills for the issue of Bitcoin bonds. Finance Minister Alejandro Zelaya said that the government wanted to create a regulatory framework on the one hand. In addition, the aim is to legally cover the issue of securities in crypto currencies. El Salvador had already announced in November that it would issue Bitcoin bonds.
Meanwhile, El Salvador’s President Nayib Bukele spoke out on twitter very euphoric about the further Bitcoin prospects. He predicts for 2022:
BTC will hit $ 100k, two more countries will adopt it as legal tender, it will become a major campaign topic in this year’s US elections, Bitcoin City will begin construction, the Vulkan bonds will be oversubscribed, and a big surprise in the process @TheBitcoinConf is imminent.
Nayib B Watch
Volcano Bond is said to help with Bitcoin City
Zelaya announced that the first Bitcoin bond is planned for this year. It will be valued at $ 1 billion and a coupon of 6.5 percent. With the loan, Bukele would like to withdraw his plan from the Bitcoin City support, which he mentions in his tweet. Correspondingly, this bond is also called Volcano Bond the speech. Because one of the features of Bitcoin City is said to be the use of geothermal energy generated by a volcano for mining.
Half the money from the Volcano Bond benefits the development of the infrastructure. The remainder will be used to buy more Bitcoin, which El Salvador wants to make a profit with, according to the government. However, Zelaya did not say when exactly the law will de facto come into effect.
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El Salvador creates legal framework for Bitcoin bonds