El Salvador will issue $1 billion in bitcoin bonds
El Salvador’s government has agreed to place $1 billion in bitcoin bonds on the Liquid Network alongside Blockstream and iFinex (the parent firm of Bitfinex and Tether).
Geothermal volcanic energy infrastructure for cryptocurrency mining
Half of the revenues from the bond sale will be utilized to create the first cryptocurrency’s geothermal volcanic energy mining infrastructure, according to the press release. The remaining half of the funds will be utilized to purchase digital gold for the state trust.
“We’ve been negotiating with El Salvador for several months and have spent a significant amount of time creating and modeling the bonds. We anticipate that the bond offering will appeal to a diverse group of investors, including cryptocurrency investors, yield hunters, hodlers, and regular folks. The tool has the ability to hasten hyperbitcoinization and usher in a new bitcoin-based financial system “In a statement, Blockstream added.
The processing of the issue will be handled by Bitfinex Securities, a tokenized stock trading platform. The latter will also assist the Salvadoran government in developing a regulatory framework for blockchain-based digital financial instruments as part of the deal.
Once the new regulatory system takes effect, Bitfinex Securities will be granted a license to operate in the country. According to iFinex, the platform will become the Salvadoran government’s only partner.
The new regulatory framework, according to Blockstream, “may pave the way” for other Liquid Network coins like Blockstream Mining Note (BMN) and Exordium (EXO).
Along Fonseca Bay, President Naib Bukele also declared the construction of Bitcoin City (Bitcoin City). To provide electricity to the city, a geothermal power plant will be erected near a volcano in the area. Its processing power will also be used to mine bitcoins.
Bitcoin legalization in El Salvador was previously dubbed “reckless”
Bitcoin City will be a full-fledged metropolis, according to Bukele, featuring residential and business sectors, restaurants, an airport, seaport, and railway station. The city would be designated as a special economic zone, exempting residents from paying income, property, capital gains, or wage taxes.
El Salvador’s official bitcoin fund purchased an extra 420 bitcoins in October. On its balance sheet, the structure now owns 1,120 BTC.
Remember that the country used a portion of the revenues from the first cryptocurrency to fund the construction of 20 modern schools and a veterinary clinic.
Bitcoin legalization in El Salvador was previously dubbed “reckless” by Ethereum developer Vitalik Buterin.
