El Salvador President Nayib Bukele and CEO of Binance cryptocurrency exchange Changpeng Zhao will discuss options for cooperation on issuing bonds in bitcoin.
In February, the International Monetary Fund (IMF) recommended that El Salvador dissolve the $150 million trust fund launched in connection with the legalization of bitcoin and return unused funds to the treasury. El Salvador’s government vehemently rejected the IMF’s recommendation, with Finance Minister Alejandro Zelaya saying “no international organization has the right to force us to do anything.”
El Salvador’s President Nayib Bukele shares the views of the country’s finance minister and believes that the US Senate is seeking to “mitigate” the potential risks to its economy that could arise after El Salvador accepted bitcoin as legal tender. Bukele plans to meet with Binance CEO Changpeng Zhao, who is currently on a working visit to El Salvador and talking to parliamentarians.
The representative of the diplomatic corps of El Salvador, Milena Mayorga, in comments to the press, said that visit Zhao was a vote of confidence in El Salvador’s decision to accept bitcoin as legal tender, as well as its intention to issue bitcoin-backed bonds. The meeting of Bukele and Zhao may take place already today, March 25th. Sources close to El Salvador’s presidential administration said that Bukele may ask Binance to assist in issuing bonds in bitcoin.
In early January, a bill was sent to the Congress of El Salvador to create legal support for the issue of Volcano Bonds bonds denominated in bitcoins in the amount of $1 billion. It was planned that the first securities would go on the market as early as March 15, however, the project was postponed indefinitely behind the difficult market situation.
Source: Bits
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