El Salvador to Issue Bonds in Bitcoin in 2024
The government of El Salvador has announced plans to issue bitcoin bonds in the first quarter of 2024 to finance the construction of a city called “Bitcoin City” in the eastern part of the country. This move comes as part of President Nayib Bukele’s efforts to integrate cryptocurrency into the country’s economy.
The bonds, which have received regulatory approval from the Digital Assets Commission, are expected to be issued in 2024. This follows the legalization of Bitcoin as legal tender in El Salvador in September 2021, at the request of President Bukele.
The government has stated that the use of Bitcoin has helped to reduce the cost of remittances and bring more Salvadorans into the financial system. However, surveys have shown that the majority of Salvadorans do not believe that cryptocurrency has improved their economic situation.
President Bukele has also announced plans to build a city called “Bitcoin City” near the Gulf of Fonseca, which will be powered by energy from a volcano. It is estimated that at least 1,000 million in volcano bonds will be issued to finance the construction of the city.
In addition, the Salvadoran government has publicly announced that it has purchased 2,381 bitcoins, with the last purchase made on July 1, 2022. President Bukele also announced that El Salvador would buy one bitcoin a day, although it is unclear if this plan has been fulfilled.
This move to issue bitcoin bonds and build a city powered by a volcano comes as President Bukele seeks re-election in the February 2024 elections. It is clear that the integration of cryptocurrency into the country’s economy will continue to be a focal point of his agenda.