El Salvador to Present Bills Aimed at Building an Adequate Infrastructure for Bitcoin Bonds

El Salvador continues with its ambitions for Bitcoin.

Infrastructure for Bitcoin Bonds

In Nov 2021 El Salvador floated plans for introducing $1 billion worth of Bitcoin bonds. The extremely brave idea is now turning into reality.

In a recent interview with a local media outlet, the country’s finance minister Alejandro Zelaya stated that they are presenting 20 securities investment and financial market related bills to build the required legal framework for issuance of Bitcoin bonds.

The purpose behind the relevant legal framework is to provide legal certainty for the investors who buy Bitcoin bonds, however, the date on which the bills will be presented to the lawmakers has not been made clear yet.

The $1 billion worth of bonds will carry a 6.5% coupon and the maturity period of 10 years. While half of the funds will be invested in Bitcoin, the remaining will help built “The Bitcoin City”

Bitcoin in El Salvador

In Sep 2021 El Salvador became the first ever country to make Bitcoin a legal tender. The country currently holds more than 1,100 BTCs worth $70 million, approximately. The interest earned through the holding is to be used for many projects including the one of building the country’s first veterinary hospital.

Moreover, while El Salvador’s approach toward Bitcoin is appreciated largely by the crypto community, it is met with much criticism from many of the traditional economists and institutions.

Now, what is crucial here is that if El Salvador’s Bitcoin experiment fails it will deter many from taking the similar route. Whereas if the experiment turns out to be a success story, the whole world will follow.