El Salvador may reportedly be the first country to ever issue debt backed by bitcoin (BTC) this week. The issuance could mark a major milestone for bitcoin adoption both inside the country and around the world.
The bond will be issued by El Salvador’s state-owned energy company LaGeo through the Liquid Network, created by the Canadian firm Blockstream, and a security tradable on the Bitfinex platform.
Source: Bitfinex | November 21, 2021
- El Salvador’s finance minister, Alejandro Zelaya, has announced that a bitcoin-backed bond could be issued on March 15th-20th. (Source: Twitter | March 11, 2022)
- The $1 billion USD volcano bond will have an initial 6.5% coupon. (Source: Fortune | March 14, 2022)
- Half of the of proceeds are to be allocated to energy and bitcoin mining infrastructure, while the other half will be used to directly purchase BTC as part of the country’s treasury. (Source: CoinDesk | February 9, 2022)
- Several weeks ago, the bond had reportedly received over $500 million USD in verbal commitments. (Source: Markets Insider | February 22, 2022)
- Proof-of-Work (PoW) miners will be powered by geothermal energy provided by local Volcanos. (Source: Twitter | January 8, 2022)