First Bitcoin Backed Bonds Coming From El Salvador Along With Bitcoin City

In a watershed moment for Bitcoin, El Salvador will fund the Bitcoin City initially using Bitcoin bonds on the Liquid Network.

By
Anirudh Tiwari
on
November 22, 2021
Category:
Blockchain News

BTC Bonds Back Bitcoin City

El Salvador’s President, Nayib Bukele, announced plans on Nov. 20 to build the world’s first “Bitcoin City,” which will be initially funded by Bitcoin-backed bonds. The news capped off a week-long promotion of BTC in the country.

While speaking at the event, Bukele proclaimed that the new city, planned in the eastern region of La Union would be powered by geothermal energy from the Conchagua Volcano and will not impose any taxes on its residents apart from Value Added Tax (VAT). El Salvador will be issuing a $1 billion US “Bitcoin Bond” on Blockstream’s Liquid Network, which will be split between a $500 million allocation of Bitcoin and a $500 million infrastructure fund for building out energy and Bitcoin mining infrastructure in the region.

“The Bitcoin Bond represents the start of a reformation of capital markets, built on Bitcoin and layer-2 technologies like the Liquid Network. Now, investment capital can flow in from around the globe without friction. Dividends can be distributed to investors instantly, with built-in cryptography to maintain confidentiality. Bonds can be traded 24/7 with other assets like stablecoins, using protocols that help eliminate the need for trust,” mentions BlockStream’s official blog about the tokenized bonds.
Source: BlockStream Blog

As previously reported by BSC News, El Salvador became the first country in the world to adopt Bitcoin as their national currency and accept it as legal tender.

Bitcoin’s price has been going through a slump after hitting a new all-time high of $68,789 on Nov. 10, as per data from CoinMarketCap. Currently, the token trades nearly 15% off the all-time around 59,000, with a market capitalization of $1.21 trillion.

Source: CoinMarketCap

About Bitcoin

Bitcoin is the first cryptocurrency in the world that sprung into existence in 2009 as a result of Satoshi Nakamoto’s Bitcoin whitepaper released in 2008. Bitcoin has since become “Digital Gold” and has held its own as the premier cryptocurrency token in the crypto-verse with the largest market capitalization. The total supply of BTC is capped at 21 million tokens, and there is a circulating supply of 18.88 million currently.

Don’t forget to download the
BSC News mobile application on iOS and Android to keep up with all the latest news for Binance Smart Chain and crypto! Be sure to join the DeFi Direct Discord to participate in all the community discussions and events!

Tags:
Anirudh Tiwari

Anirudh is a cryptocurrency analyst and writer who specializes in derivatives, DeFi, regulations and CBDCs. He has a Master’s degree in Finance. Before delving into crypto, he worked with a leading U.S. based investment bank. Apart from work, he is a music connoisseur and likes to play the drums. His largest holdings in crypto are Ethereum, Cardano, and Polkadot.

Text Link

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.