Once again the “Bitcoin Bond” plan of the El Salvador government is again in traction because of the latest development in its fully Bitcoin-based project.
El Salvador is the first country in the world, which adopted Bitcoin as a currency. On 7 September, this country introduced its Bitcoin law to give legal status to Bitcoin as an official currency of the country alongside the US dollar. To bring the initiative of Bitcoin use in the payment option, the country launched its national digital Bitcoin wallet “Chivo”. Chivo is a bitcoin lightning network-enabled wallet, which instantly converts all Bitcoin transactions into US dollar during payment transactions, to remain away from Bitcoin price volatility issues.
On 17 November, a 33-page digital securities bill was released by the Ministry of the Economy of El Salvador. Bill is an order for lawmakers to create a legal framework using digital assets in public issuances by the country.
Completion of this whole work will allow the government to issue a “Bitcoin Bond” or say “Volcano Bond”.
Bitcoin Bond is an El Salvador Government backed traditional Bond, which aimed to raise $1 billion. As per the plan, the country will purchase $500 million worth of Bitcoin & rest of the funds will invest in a Bitcoin mining plant (mining rigs & volcano-based electricity power plant) & Bitcoin City.
Initially, the Bitcoin Bond plan was announced by this country in 2021 and was aimed to launch in March of this year but scheduled for September & further rescheduled for unconfirmed timeframe because of security reasons.
Bitfinex crypto exchange is supporting the Bitcoin Bond plan of El Salvador through a direct partnership with the government of this country. Paolo Ardoino, chief technology officer of cryptocurrency exchange Bitfinex, shared his happiness on the new legal efforts of the country to make the Bitcoin Bond project a reality.