El Salvador, a true precursor – El Salvador’s President Nayib Bukele recently showed up – one more time – very optimistic about the common future of Bitcoin (BTC) and its country for 2022. Among the good news to come this year, the first Bitcoin-based government bonds should see the light of day.
Raise $ 1 billion in bonds with Bitcoin?
In November 2021, the Salvadoran president Nayib bukele announced that his nation would see the construction of a futuristic city called “Bitcoin City”. To start this off, the leader of El Salvador also announced the upcoming broadcast of$ 1 billion government bonds based, not on fiat currency, but on Bitcoin.
Nicknamed “Volcano Bonds”, these obligations of a new kind require an adjustment of the existing laws in the matter. The person in charge of the Treasury of El Salvador, Alejandro zelaya, explained, in an interview with NewsBTC, that the government services would work in concert with potential investors to issue these Volcano Bonds in a clearly established framework.
“The government of El Salvador will send to Congress some 20 bills covering financial markets and investment in securities, in order to provide a legal basis for the issuance of bitcoin bonds. “
Alejandro Zelaya, head of the Treasury Salvadoran
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A crypto-bond with 6.5% return to start
We also know a little more about the contours of these famous Volvano Bonds. They will last for 10 years, and accompanied by a bond coupon with 6.5% interest.
But El Salvador does not intend to stop there, and even wishes to become a precursor and one hub for the issuance of government bonds via cryptocurrencies. According to the official Twitter account of El Salvador’s Ministry of Finance, which quotes Alejandro Zelaya:
“El Salvador could become a regional center where other countries can issue debt (bonds). We have great advantages for this, like having a dollarized economy and being on the cutting edge when it comes to cryptos. “
We understand better why the International Monetary Fund (IMF) is so annoyed to see El Salvador stolen on its own. If the nation of Nayib Bukele succeeds in its ambition to launch bonds through Bitcoin and cryptoassets, it could give ideas to other countries, especially developing ones.
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