{"id":53238,"date":"2021-11-21T10:04:06","date_gmt":"2021-11-21T08:04:06","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=53238"},"modified":"2025-09-03T14:11:08","modified_gmt":"2025-09-03T11:11:08","slug":"el-salvador-to-issue-1-billion-bitcoin-bonds-on-the-liquid-network","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/el-salvador-to-issue-1-billion-bitcoin-bonds-on-the-liquid-network\/","title":{"rendered":"El Salvador to issue $1 billion Bitcoin bonds on the Liquid Network"},"content":{"rendered":"<p>The government of El Salvador has struck a deal with Blockstream and iFinex (the parent company of Bitfinex and Tether) to issue $1 billion in Bitcoin bonds on the Liquid Network.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">We\u2019re excited to share our collaboration with the Republic of El Salvador for the <a href=\\\"https:\/\/twitter.com\/hashtag\/BitcoinBond?src=hash&#038;ref_src=twsrc%5Etfw\\\">#BitcoinBond<\/a>, an issuance of $1B USD in tokenized bonds on <a href=\\\"https:\/\/twitter.com\/Liquid_BTC?ref_src=twsrc%5Etfw\\\">@Liquid_BTC<\/a> for acquiring <a href=\\\"https:\/\/twitter.com\/hashtag\/bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\\\">#bitcoin<\/a> and building out energy and mining infrastructure in El Salvador. \ud83c\udf0b\u26a1\ufe0f <a href=\\\"https:\/\/t.co\/rDaCDdewSo\\\">https:\/\/t.co\/rDaCDdewSo<\/a> <a href=\\\"https:\/\/t.co\/3VAC6MISSl\\\">pic.twitter.com\/3VAC6MISSl<\/a><\/p>\n<p>\u2014 Blockstream (@Blockstream) <a href=\\\"https:\/\/twitter.com\/Blockstream\/status\/1462268766230917123?ref_src=twsrc%5Etfw\\\">November 21, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>According to the press release, half of the proceeds from the bond sale will go to developing <a href=\"https:\/\/forklog.com\/en\/news\/el-salvador-begins-bitcoin-mining-on-volcano-powered-energy\">mining infrastructure<\/a> for the first cryptocurrency using geothermal volcanic energy. The other 50% will go to purchasing digital gold for the state trust.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>&#8220;We have been negotiating with El Salvador for many months and have put a great deal of effort into developing and modelling the bonds. We believe the bond offering will be attractive to a broad range of investors, primarily crypto investors, as well as those seeking yield, hodlers and ordinary people. The instrument could accelerate hyperbitcoinisation and give rise to a new financial system based on Bitcoin,&#8221; said Blockstream.<\/p>\n<\/blockquote>\n<p>The issuance will be handled by Bitfinex Securities, the platform for trading tokenised securities. Under the agreement, the latter will also help the government of El Salvador develop a regulatory framework for digital financial instruments based on blockchain.<\/p>\n<p>Once the new regulatory regime comes into force, Bitfinex Securities will receive a license to operate in the country. The platform will become the <a href=\\\"https:\/\/www.bitfinex.com\/posts\/741\\\">exclusive partner<\/a> of the government of El Salvador, according to iFinex.  <\/p>\n<p>Blockstream noted that the introduction of a regulatory framework \\&#8221;could pave the way\\&#8221; for other tokens issued on the Liquid Network, such as Blockstream Mining Note (BMN) or Exordium (EXO).<\/p>\n<p>President Nayib Bukele also announced the construction of Bitcoin City along the Gulf of Fonseca. To power the city, a geothermal power plant will be built near the region&#8217;s volcano. Its capacity will also be used for Bitcoin mining. <\/p>\n<figure class=\\\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\\\">\n<div class=\\\"wp-block-embed__wrapper\\\">\n<iframe loading=\\\"lazy\\\" title=\\\"Bitcoin City - El Salvador President LIVE at #FeelTheBit\\\" width=\\\"500\\\" height=\\\"281\\\" src=\\\"https:\/\/www.youtube.com\/embed\/mNdPS940InI?feature=oembed\\\" frameborder=\\\"0\\\" allow=\\\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\\\" referrerpolicy=\\\"strict-origin-when-cross-origin\\\" allowfullscreen><\/iframe>\n<\/div>\n<\/figure>\n<p>According to Bukele, Bitcoin City will be a fully-fledged metropolis with residential and business districts, restaurants, an airport, a seaport and a railway station. The city will be designated a special economic zone where income tax, property tax, capital gains tax and payroll tax are not levied. <\/p>\n<p>In October, the Salvadoran state Bitcoin fund <a href=\"https:\/\/forklog.com\/en\/news\/el-salvadors-state-bitcoin-fund-buys-an-additional-420-btc\">acquired an additional 420 BTC<\/a>. The fund now holds 1,120 BTC.<\/p>\n<p>As noted, a portion of profits from operations with the first cryptocurrency is used to fund the construction of <a href=\"https:\/\/forklog.com\/en\/news\/el-salvador-to-build-20-schools-using-bitcoin-profits\">20 modern schools<\/a> and <a href=\"https:\/\/forklog.com\/en\/news\/el-salvador-to-channel-bitcoin-profits-into-building-a-veterinary-clinic\">a veterinary clinic<\/a>.<\/p>\n<p>Earlier, Ethereum founder Vitalik Buterin <a href=\"https:\/\/forklog.com\/en\/news\/vitalik-buterin-calls-el-salvadors-bitcoin-legalization-foolhardy\">described the legalization of Bitcoin in El Salvador as &#8216;reckless&#8217;<\/a>.<\/p>\n<p>Read ForkLog&#8217;s Bitcoin news in our <a href=\\\"\/\/telegram.me\/forklog\\\" target=\\\"\u201c_blank\u201d\\\" rel=\\\"\u201cnofollow\u201d noopener\\\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The government of El Salvador has struck a deal with Blockstream and iFinex (the parent company of Bitfinex and Tether) to issue $1 billion in Bitcoin bonds on the Liquid Network.<\/p>\n","protected":false},"author":1,"featured_media":53239,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[95,307,1431,1278],"class_list":["post-53238","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitfinex","tag-blockstream","tag-bonds","tag-el-salvador"],"aioseo_notices":[],"amp_enabled":true,"views":"17","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/53238","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=53238"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/53238\/revisions"}],"predecessor-version":[{"id":53240,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/53238\/revisions\/53240"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/53239"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=53238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=53238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=53238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}