El Salvador to Buy $500 Million Bitcoin, Taps Crypto Market For Government Bonds, Plans Bitcoin City

[kyxap]

El Salvador is set to become the first country in the world to issue government debt, backed by its economy and taxpayers, on the bitcoin market.

This will mark the first time in 500 years since the invention of modern finance that a sovereign does not turn to banks to raise capital, but goes directly to the global public.

Samson Mow of Blockstream, the bitcoin dev studio, said the offering will be on the Liquid network, a little used bitcoin sidechain operated by Blockstream. He said:

“Today, the president of El Salvador and I have announced that they will be issuing a $1 billion US ‘Bitcoin Bond’ on the Liquid Network.

The $1 billion US raised will be split between a $500M allocation of bitcoin (BTC) and a $500M infrastructure spend for building out energy and Bitcoin mining infrastructure in the region.”

[Scott Shelby]

I guess, this is a very wise move on the part of the government, wonder what impact this will have on the domestic economy.

[Ivan Ivanov]

@scott-shelby but IMF won't be glad with such step and could stop own funding program for Salvador.

[kyxap]

@scott-shelby
I think that it is positive and nothing else. and all thanks to the fact that a young president began to rule the country.

[Scott Shelby]

@kyxap
It depends on how you look at it. At the age of 18, he was already running the company, as he is the son of a businessman. Youth is not so important here, most likely he is an appointee, I doubt that they have a standard democracy there.

[kyxap]

@scott-shelby Apparently it is. But if he ran a company at 18, then he should have enough experience.

[Scott Shelby]

@kyxap
He would not have been able to run the company if he had been born into a normally Salvadoran family. I mean, that it is unlikely this president is loved inside the country, those strikes that were on the eve of that decision are proof of this.