Salvadoran Finance Minister Alejandro Celaya said that a $1 billion bitcoin bond issue will take place in March.
Initially, the plans of the El Salvadorian government to issue bonds in bitcoins were reported last year. Now, Alejandro Zelaya has revealed that the blockchain bond issue is “completely ready” and will take place between March 15 and 20.
The Treasury Secretary confirmed that a $1 billion bond issue is planned, although as demand for bitcoin bonds is expected to rise, the authorities may issue an additional $500 million issue.
“If we want to develop this country, then we need to invest in it in this way,” Zelaya said.
According to him, more people will have access to new bonds – the minimum purchase amount for a security will be $100 and this will not require a brokerage account. The issue of bonds tied to bitcoin will take place on the Bitcoin sidechain Liquid Network of Blockstream.
At the same time, the bonds themselves will “fully comply with the regulation adopted in the financial markets.” That is, buyers of bonds will have to go through identification procedures.
The bonds will yield 6.5% and will expire in 2032. The proceeds from the sale of securities by the authorities of El Salvador will be used to buy bitcoins, develop infrastructure and build the “Bitcoin City”.
In January, bills were submitted to the El Salvadorian Congress to create legal support for the issuance of Volcano Bonds bonds denominated in bitcoins.
Source: Bits
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