The issuance of the instrument is expected to raise $1 billion. According to Bitfinex, the funds raised through the Volcano Bond will be used to repay the country's sovereign debt, create infrastructure for mining, and build Bitcoin City.
After recognizing the first cryptocurrency as legal tender in September 2021, El Salvador began mining digital gold from the geothermal energy of a volcano the very next month.
They have their own goal to pass a law on digital assets and I think they will succeed!
Topic: Digital Bond Law In El Salvador (Read 105 times)
El Salvador has no more than 3,000 bitcoins on its balance sheet, and half of the coins were bought for more than $45,000. A small poor country with a small population of 6.3 million will not start the mass adoption of bitcoin. The project may be interesting, but it may be more profitable to invest in bitcoin.
To be honest, El-Salvador is gambling on bitcoin big time. I understand that the president is very bullish on bitcoin but the country will face a bad financial date if the price of bitcoin remains down. They will definitely gain if the price goes higher but Not sure what's their contingency plan if the price goes down?
So whatever bond or instruments they are releasing, are gambling only. Not only for El-Salvador but for the investors as well. I hope they will find some institutional buyers.
So whatever bond or instruments they are releasing, are gambling only. Not only for El-Salvador but for the investors as well. I hope they will find some institutional buyers.
After the adoption of bitcoin as the legal tender in the country, President Nayib Bukele submitted a bill on the Digital Assets Issuance Law to his National Legislative Assembly and finally it was approved. The law is to utilize the volcano bonds and making bitcoin to be used publically in all aspects of business and also to fund the Bitcoin City.
El Salvador Approves Digital Assets Issuance Law
Construction of the Bitcoin City will Continues
As it is said in the article, part of the money will be used to fund the bitcoin city in El Salvador whereby there will be tax-free and carbon-neutral in the city. El Salvador Approves Digital Assets Issuance Law
Jump to: