author @nayibbukele
Bitcoin is six months old as legal tender in El Salvador, and according to Alejandro Zelaya, Minister of Finance, the Government of Nayib Bukele is preparing the first bond issue in cryptocurrency.
The issuance of the "Volcano Bonds" will serve, says the government, to finance the Bitcoin City project, announced by Bukele in November 2021 during the closing of the Bitcoin Week event, which took place in the country.
The bitcoin city, according to the president, will be built near the Conchagua volcano, in the department of La Unión, to take advantage of its energy to power the city and bitcoin mining, since the city will have residential and commercial areas, and will be equipped with services, entertainment areas, restaurants, airport, port and train station.
"Thanks to bitcoin you have seen the number of investors, the number of tourists, the number of people who are even coming to live in El Salvador," Bukele said during an event in which he inaugurated the expansion of the international airport in early February. .
The launch of El Salvador's state bonds, which would be based on bitcoin (BTC), seems to be getting closer, but before that there could be several announcements related to economic and financial aspects of the Central American country.
According to the president, the objectives of this reform are to create tax incentives, grant citizenship for making investments, reduce bureaucracy and also develop a new law on financial assets (securities), where the legal code of the so-called "Volcano Bonds" is presumed to be. From El Salvador.
"The plan is simple: as the world falls into tyranny, we will create a paradise for freedom," Bukele said in a tweet.
When the launch of El Salvador's EBB1 bonds was announced last November 2021, it was stated that during the first quarter of 2022 these bonds would be put up for sale on the Bitfinex exchange.
On the other hand, despite the inflation of the US dollar, El Salvador - a country that uses this currency - seems ready to issue its BTC-backed bonds and apply other reforms.
If it does not do so this March, there is a high probability that the government will announce the launch of the bonds from the Bitcoin Conference 2022, which will take place from April 6 to 9, 2022 in the city of Miami, USA.
This would be likely, taking into account that last year at this conference Nayib Bukele announced the Bitcoin Law, which was approved a few days later. This year it is confirmed that Bukele will speak at the conference, and the attendance of other officials and business managers is also expected. CriptoNoticias will be present at that event as well.
In the time since the adoption of Bitcoin by El Salvador as legal tender, this country has seen its credit rating drop, saw tourism grow by 30%, and opened a veterinary hospital with the money generated based on the bitcoins that the government bought last year.
Meanwhile, financial markets are in turmoil over the war in Ukraine, and some investors are eyeing El Salvador's volcano bonds with interest ahead of their imminent launch.