Payments
El Salvador to offer $1B bitcoin bond
November 22, 2021
El Salvador has announced it will offer $1 billion in bitcoin as bonds on the Liquid Network through a partnership with Blocksteam. Of the total, $500 million will be allocated to bitcoin and $500 million will be spent for building energy and bitcoin mining infrastructure in the country, according to a press release.
The country was the first in the world to adopt bitcoin as official currency on Sept. 7. Now with these tokenized bonds, it can offer a variety of benefits for investors including:
- Citizenship through investing.
- Less risk due to regulatory framework.
- Low volatility and friction.
"We believe in a bitcoin future. The future of financial products belongs on bitcoin. This is a historic milestone and only the beginning of our search to achieve global inclusivity for finance — the same way that bitcoin has created global inclusivity for money," Samson Mow, chief strategy officer at Blockstream, said in the release. "This is the new dawn of digital capital markets."
The country will offer the bond for a 10-year duration and a 6.5% coupon, which is roughly half the weighted coupon of El Salvador's long-duration sovereign debt.
Related Media
Subscribe
Get the latest news and resources from ATM Marketplace.
