El Salvador will issue its first bitcoin bond in March

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The finance minister of El Salvador confirmed that the country is almost ready to issue its Bitcoin bond next month. 

On 7 September, El Salvador adopted Bitcoin as Currency. To generate revenue through bitcoin mining plants in the country, El Salvador president Nayib Bukele announced a Bitcoin bond idea in November of last year to fund the Volcano-based energy power plant and Bitcoin mining machines. 

On 8 February, Alejandro Zelaya, Finance minister, shared some details about the Bitcoin bond in speaking with a local media news channel. 

Zelaya said that the country is almost ready to issue its first bitcoin bond between 15 March to 20 March. And also asserted that if we want to build the country then surely we need to invest in such types of revolutionary bonds. 

The initial plan of this Bitcoin bond aimed to collect a total of $1 billion and the finance minister expects that the country will be able to collect at least $500 million investment in this bond. 

Zelaya explained that the Bitcoin Bond idea is ready for a unique and more advanced bond instead of a traditional bond, however, asserted that Bitcoin Bond is under all traditional financial rules and regulations. 

The finance minister noted that the minimum investment in Bitcoin bonds will be $100 so that all citizens can easily decide to buy.

Bonds will be issued on the Blockstream’s Liquid Network sidechain. And it will require know-your-customer (KYC) and due diligence practices. 

Bitcoin Bond facing criticism 

Almost every Bitcoin supporter believes that the Bitcoin bond will not only allow the citizens of El Salvador but will also initiate a more eager-based push among the citizens to go with the adoption of Bitcoin and crypto industry.

However, this idea of El Salvador’s Bitcoin bond getting support in major communities but few global organizations like the International Monetary Fund (IMF) raised questions and claimed that the country is taking a very big risk with the funds of its citizens. 

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