El Salvador’s Bitcoin-Backed “Volcano” Bonds.
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An editor at Coincrop
25 Nov 2022 | 2 min read
l Salvador's Minister of the Economy, Maria Luisa Hayem Brevé, submitted a digital assets issuance bill to the country's legislative assembly. This will allow for El Salvador to launch its bitcoin-backed "volcano" bonds in the near future.
The initiative's goal is to bring in money and investors from El Salvador. The plans to issue $1 billion in bonds on the Liquid Network, a federated Bitcoin sidechain, were revealed. The proceedings of the bonds will be split between investing $500 million in bitcoin and another investment of the same amount to build energy and bitcoin mining infrastructure in the region.
In a Tweet, Paolo Ardoino, CTO of cryptocurrency exchange Bitfinex wrote that "Digital securities law will enable El Salvador to be the financial center of central and south America."
Bitfinex will most likely be given a license to process and list the bond issuance in El Salvador.
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