Resounding Bonds – On September 7, 2021, the salvador succeeded in make Bitcoin (BTC) its national currency. Since then, the king of cryptocurrencies has continued to grow in the nation of the president Nayib Bukele. The latter had announced the use of Bitcoin as a guarantee for sovereign debt issuance. The first of these bonds will probably be available from mid-March 2022.
Volcanic Bonds Thanks to Bitcoin
In November 2021, the Salvadoran President Nayib Bukele once again caused a sensation by announcing on the one hand a futuristic city project – the Bitcoin City -, but above all that the funding of the latter would be done in part through the issuance of volcano leaps ». In all, this creation of sovereign debt would relate to $1 billion of bonds based on Bitcoin.
According to a publication by the local media Diario El Salvador, the Central American country is now ready to issue its volcano leaps. It is the Minister of Finance, Alejandro Zelayawhich announced that the preparation phase of this bond issuance thanks to Bitcoin would end between March 15 and 20 of this year 2022.
“The advantage of this bitcoin bond is that it accepts cryptocurrency and bitcoin payments. This gives better access to the capital market. By bringing all these financial flows and receiving this kind of money [numérique]it makes the sale and subscription more likely, i.e. a larger supply, because it democratizes access [aux dettes souveraines]. »
Alejandro Zelaya, Minister of Finance of El Salvador
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The IMF pushed to the brink of a nervous breakdown
These cryptobonds have the help of the company Blockstreamwhich helps the authorities of El Salvador in the issuance of Volcano Bonds on the Liquid Network. These obligations will also be listed on the stock exchangein accordance with the regulations, and accessible from $100 of investment.
“(…) it is a normal obligation, similar to any other, but it will have the characteristic of innovating in terms of payment. (…) It will comply with all financial market regulations. The difference is that it will be done through the Liquid Network, so there will be opportunities for anyone willing to invest. [un minimum de] 100 dollars in these bonds. »
Alejandro Zelaya, Minister of Finance of El Salvador
By becoming the first country to issue debt using cryptocurrency, El Salvador will enrage more the International Monetary Fund (IMF). It must be said that seeing Bitcoin become a legal tender currency already had made (immediately) angry supranational body.
The IMF had also made blackmail with El Salvador, making the small country dangle a billion dollar loan if he backtracked on bitcoin. We can now easily imagine the reaction of this organization, which discovers that the nation of Nayib Bukele will potentially be able to dispense with services from the IMF to obtain this sum, thanks to Bitcoin!
Not even to mention a possible effect ” snowball “we understand better why – by this sudden fear of competition – the Monetary Fund is one of the organizations pushing hardest for a international cooperation of supervision and strict supervision crypto-assets. See you next March to see if the little Salvadoran David will kneel the tentacle Goliath IMF with her bitcoin slingshot.
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