Hello everybody...
Since the beginning of the year 2022, many plans have been put in place in El Salvador, the first country to change its fiat currency for a cryptocurrency. These plans include the construction of an amazing city that will be self-sustainable thanks to bitcoin. But for the construction of this great project, a lot of investment is needed, it is estimated that approximately more than $1 billion will be allocated for the construction of the Bitcoin City.
The president of El Salvador, Nayib B, plans to finance the entire project with the so-called Bitcoin Bonds, financial instruments which citizens of El Salvador will be able to invest and which will generate an annual return of %6.5 which will be paid to investors every January, with a duration of 10 years. And they will be issued digitally in Liquid, a Bitcoin sidechain developed by Blockstream.
One of the main advantages that this bitcoin bonds project may have if it has the desired success, is to demonstrate that every country regardless of its size may have the ability to build self-sustainable wealth without the need for multilateral agencies and the international community.
The plan is already underway and so far the Government has sent 20 bills to the Legislative Assembly to provide a legal basis for Bitcoin Bonds. And if these are approved, the sale will begin to start with the construction of the bitcoin city.
In my personal opinion, I think that if this bitcoin bond project is a real success, not only countries will start to be interested, but also many financial institutions will start to issue cryptocurrency bonds to finance different projects such as infrastructure. I also think that this idea of cryptocurrency bonds can be used by the crypto community or by the mega-corporations for the construction of the metaverse, which will give greater participation to the people in these projects.