El Salvador Intends to Issue Bitcoin Bonds

The government of El Salvador, led by President Nayyib Bukele, has prepared 20 bills aimed at creating the legal and financial basis for the launch of a $1 billion Bitcoin bond called Volcano Bonds.

Treasury chief Alejandra Zelaya told El Mundo that the bills will cover rules for issuing securities as cryptocurrencies to ensure the viability of Bitcoin bonds. However, the timing of the submission of the law to legislators is not yet known.

The proceeds from the sale of bonds in the amount of $1 billion will be used to fund the Bitcoin City initiative, where President Bukele has pledged to provide “digital and technological education, geothermal energy for the entire city, and efficient and sustainable public transport.”

Also in Bitcoin City, they intend to establish Bitcoin mining using volcanic geothermal energy. This is why the bonds were named Volcano Bonds.

The proceeds from the bond issue can also be used to redeem the $800 million Eurobond issue, which matures in January 2023.

Zelaya noted that investors are already showing significant interest in Bitcoin Bonds, as they offer access to BTC and 10-year maturity of 6.5%.

Earlier, on the network, the information appeared that Bitcoins began to disappear from the wallets of the Salvadorans. The total amount of missing funds exceeded $96,000.

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