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El Salvador is unwavering in its support for Bitcoin adoption. The Central American administration will send 20 bills to El Salvador’s Congress in order to establish a legislative framework that will allow Bitcoin bonds to be issued. Alejandro Zelaya, Minister of Finance in President Nayib Bukele’s administration, verified the report.

El Salvador will issue the first series of $1 billion Bitcoin bonds this year. It will be one of the first of its kind, backed by BTC and issued by a national government, and known as Volcano Bonds due to its utilization of volcanic energy for mining.

The new bills will investigate the viability of the bonds proposed in November 2021.

Volcano Bonds will pay off an $800 million Eurobond issue

The government intends to utilize the proceeds from Volcano Bonds to cover El Salvador’s $800 million Eurobond issue, which matures in 2023. In this manner, the country can avoid issuing another Eurobond. The bills will allow individuals and institutions, including foreigners, to invest in the country using BTC.

According to Zelaya, a group of investors has expressed interest in purchasing the 10-year notes with a 6.5 percent interest rate. He says that the government will not abandon the traditional market.

“Because there is a maturity that must be paid, we can simply pay without issuing another Eurobond in the usual market, and we can go locate a bond that is denominated in dollars and accepts payments in bitcoin as such.” We believe we have received sufficient offers.”

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