El Salvador's $1 billion Bitcoin bond may be issued between 14 and 20 March. The 10-year bond will offer +6.5% per annum for 10 years (approximately +$1.65 billion).

$500 million will be used to buy bitcoins, the remaining $500 million will be spent on Bitcoin mining infrastructure as part of 'Bitcoin City'.

The Finance Minister, Alejandro Zelaya said, "We believe that between March 15 and 20 is the right timing, we have the tools almost finished. But, the international context will tell us... I didn't expect the war in Ukraine."

El Salvador's bond is called EBB1 (El Salvador Bitcoin Bond 1). It has been suggested that at least 30% of the $1 billion was 'verbally reserved'.

chivo bitcoin

source: twitter

Since the adoption of Bitcoin in El Salvador, statistics from Chivo wallets in 2021 showed approximately 65,000 transactions were carried out per second.

The new bitcoin bond is also referred to as the 'volcano bond'. Nayib Armando Bukele Ortez, the President of El Salvador, has great ambitions when it comes to cryptocurrencies.

El Salvador Bitcoin City

Bukele wishes to finance 'Bitcoin City' at the Honduran border. Bitcoin mining will be powered by geothermal energy from a volcano that is near the location of bitcoin city (Conchagua volcano), hence the name 'volcano bond'.

President Nayib Bukele described his plans for Bitcoin City in November: "Bitcoin City' is not only an idea, it will also be a reality in El Salvador. It will have residential areas, shopping malls, restaurants, a port, everything around Bitcoin.

"In 'Bitcoin City' we will have mining, agriculture, culture and sport. When we depart from the world, this city will last and everyone will be able to see the city. We won't have income tax, forever. No income taxes, no property tax, no taxes on hiring, zero municipal taxes and zero CO2 emissions.

"The only taxes they will have in 'Bitcoin City' is VAT, half will be used to pay the bonds of the municipality and the rest for public infrastructure and the maintenance of the city."

source: gobierno del el salvador

Bukele strongly believes Bitcoin City is 'the evolution of mankind'.

El Salvador chose Liquid Network (blockstream.com) for the upcoming one billion dollars Bitcoin bond. The Government is planning to license Bitfinex Securities to process as well as list the bond issuance.

iFinex Inc. is the parent company of Bitfinex.

This means Blockstream Mining Note (BMN) and Exordium (EXO) tokens can be listed on the exchange that is fully regulated by El Salvador.

The architecture of the tokenized debt issuance was designed by Samson Mow and Jesse Knutson. The annual payouts of +6.5% will be issued via Blockstream’s Asset Management Platform (AMP).

Investors will also enjoy a Bitcoin Dividend that will be distributed via AMP.

How Will El Salvador Bond Work in Liquid?

Liquid Network is offering a sidechain to the Bitcoin network. The sidechain runs in parallel to the BTC network using a 2-way peg. In the Liquid Network BTC will be referred to as L-BTC.

Additionally, Liquid uses confidential transactions. The amounts and assets in the transactions are only available to those involved in the transaction and any third parties that were designed to access the transactions.

liquid transactions crypto

source: blockstream

Only the receiver can decrypt the amount that was sent. The receiver that holds the private key can share it with any third party that he or she wishes for purposes such as validation.

which hides the amounts and asset types within transactions from all third parties. This information is only known by the parties involved in the transaction and other third parties they designate.

Liquid transactions use confidential addresses that include a public blinding key and a base address. Only the receiver alone can decrypt the amount sent in a transaction.

The receiver can share the private blinding key with any third party in order for that party to be able to validate the amount and asset type.

IMF Warns El Salvador

$800 million is due for maturity in January 2023. If the Bitcoin bond will fail to interest investors, El Salvador may struggle to repay the debt.

The International Monetary Fund (IMF) warned El Salvador that it may struggle obtaining a loan from the IMF as long as Bitcoin legal tender status is not reversed.

El Salvador is waiting for the results of the first of its kind of BTC bond, dismissing the IMF warnings. Since Bitcoin received its legal status in El Salvador, tourism has been on the rise, according to official Government figures.

el salvador tourists

source: El Salvador

Morena Valdez, the Head of the Ministry of Tourism (MITUR) said, "Tourism was one of the first sectors where it was possible to verify the potential.

“The implementation of Bitcoin benefited the sector. More tourists and investors have come to see how cryptocurrency works.

"We did a poll to verify the activity, according to the before and after of Bitcoin. The tourism sector increased, in November and December, more than 30%."

It has been reported that institutional investors may sit on the fence in the upcoming Bitcoin bond issuance. Therefore, El Salvador may rely on the retail market where anyone can participate. Private investors may join the sale with as little as $100.

Monitoring the outcome of the bond's sales may be a focal point in the transformation of traditional financial products into the digital assets.

The benefits of participating in the Bitcoin bond are gaining exposure to cryptocurrencies, thus benefiting from any appreciation in BTC.

Should Turkey adopts Shiba Inu (SHIB), if the bond is marked a great success, Turkey may be next in line.

El Salvador's $1 billion Bitcoin bond may be issued between 14 and 20 March. The 10-year bond will offer +6.5% per annum for 10 years (approximately +$1.65 billion).

$500 million will be used to buy bitcoins, the remaining $500 million will be spent on Bitcoin mining infrastructure as part of 'Bitcoin City'.

The Finance Minister, Alejandro Zelaya said, "We believe that between March 15 and 20 is the right timing, we have the tools almost finished. But, the international context will tell us... I didn't expect the war in Ukraine."

El Salvador's bond is called EBB1 (El Salvador Bitcoin Bond 1). It has been suggested that at least 30% of the $1 billion was 'verbally reserved'.

chivo bitcoin

source: twitter

Since the adoption of Bitcoin in El Salvador, statistics from Chivo wallets in 2021 showed approximately 65,000 transactions were carried out per second.

The new bitcoin bond is also referred to as the 'volcano bond'. Nayib Armando Bukele Ortez, the President of El Salvador, has great ambitions when it comes to cryptocurrencies.

El Salvador Bitcoin City

Bukele wishes to finance 'Bitcoin City' at the Honduran border. Bitcoin mining will be powered by geothermal energy from a volcano that is near the location of bitcoin city (Conchagua volcano), hence the name 'volcano bond'.

President Nayib Bukele described his plans for Bitcoin City in November: "Bitcoin City' is not only an idea, it will also be a reality in El Salvador. It will have residential areas, shopping malls, restaurants, a port, everything around Bitcoin.

"In 'Bitcoin City' we will have mining, agriculture, culture and sport. When we depart from the world, this city will last and everyone will be able to see the city. We won't have income tax, forever. No income taxes, no property tax, no taxes on hiring, zero municipal taxes and zero CO2 emissions.

"The only taxes they will have in 'Bitcoin City' is VAT, half will be used to pay the bonds of the municipality and the rest for public infrastructure and the maintenance of the city."

source: gobierno del el salvador

Bukele strongly believes Bitcoin City is 'the evolution of mankind'.

El Salvador chose Liquid Network (blockstream.com) for the upcoming one billion dollars Bitcoin bond. The Government is planning to license Bitfinex Securities to process as well as list the bond issuance.

iFinex Inc. is the parent company of Bitfinex.

This means Blockstream Mining Note (BMN) and Exordium (EXO) tokens can be listed on the exchange that is fully regulated by El Salvador.

The architecture of the tokenized debt issuance was designed by Samson Mow and Jesse Knutson. The annual payouts of +6.5% will be issued via Blockstream’s Asset Management Platform (AMP).

Investors will also enjoy a Bitcoin Dividend that will be distributed via AMP.

How Will El Salvador Bond Work in Liquid?

Liquid Network is offering a sidechain to the Bitcoin network. The sidechain runs in parallel to the BTC network using a 2-way peg. In the Liquid Network BTC will be referred to as L-BTC.

Additionally, Liquid uses confidential transactions. The amounts and assets in the transactions are only available to those involved in the transaction and any third parties that were designed to access the transactions.

liquid transactions crypto

source: blockstream

Only the receiver can decrypt the amount that was sent. The receiver that holds the private key can share it with any third party that he or she wishes for purposes such as validation.

which hides the amounts and asset types within transactions from all third parties. This information is only known by the parties involved in the transaction and other third parties they designate.

Liquid transactions use confidential addresses that include a public blinding key and a base address. Only the receiver alone can decrypt the amount sent in a transaction.

The receiver can share the private blinding key with any third party in order for that party to be able to validate the amount and asset type.

IMF Warns El Salvador

$800 million is due for maturity in January 2023. If the Bitcoin bond will fail to interest investors, El Salvador may struggle to repay the debt.

The International Monetary Fund (IMF) warned El Salvador that it may struggle obtaining a loan from the IMF as long as Bitcoin legal tender status is not reversed.

El Salvador is waiting for the results of the first of its kind of BTC bond, dismissing the IMF warnings. Since Bitcoin received its legal status in El Salvador, tourism has been on the rise, according to official Government figures.

el salvador tourists

source: El Salvador

Morena Valdez, the Head of the Ministry of Tourism (MITUR) said, "Tourism was one of the first sectors where it was possible to verify the potential.

“The implementation of Bitcoin benefited the sector. More tourists and investors have come to see how cryptocurrency works.

"We did a poll to verify the activity, according to the before and after of Bitcoin. The tourism sector increased, in November and December, more than 30%."

It has been reported that institutional investors may sit on the fence in the upcoming Bitcoin bond issuance. Therefore, El Salvador may rely on the retail market where anyone can participate. Private investors may join the sale with as little as $100.

Monitoring the outcome of the bond's sales may be a focal point in the transformation of traditional financial products into the digital assets.

The benefits of participating in the Bitcoin bond are gaining exposure to cryptocurrencies, thus benefiting from any appreciation in BTC.

Should Turkey adopts Shiba Inu (SHIB), if the bond is marked a great success, Turkey may be next in line.