El Salvador plans to issue first bitcoin bond next month

Quick Take

  • El Salvador is planning its first bitcoin bond issuance between March 15 and March 20. 
  • The country’s finance minister expects the offering to be oversubscribed by an additional $500 million. 

El Salvador plans to issue its first “bitcoin bond” next month, finance minister Alejandro Zelaya said on February 8.

Speaking on a local news program, Zelaya said that the government is planning to have the bond “totally ready” for issuance between March 15 and March 20.

“If we really want to build this country, we have to invest in it like this,” Zelaya said.

Zelaya confirmed that the government is still planning to issue $1 billion for the first bond, as previously mentioned during a November 20 event. However, Zelaya said during the show that he now expects the bond to be oversubscribed by about $500 million, at least.

According to Zelaya, more people would have access to this new type of bond than a traditional one, as it will allow a minimum purchase of $100 and does not require going through a stockbroker. The bond will be issued on Blockstream’s Liquid Network sidechain. Zelaya said the bitcoin bonds “will comply with all the regulations of the financial markets,” such as know-your-customer (KYC) and due diligence practices.

The world first learned about the bitcoin bond idea during a flashy event on November, 20, when El Salvador’s president Nayib Bukele shared the stage with Blockstream chief strategy officer Samson Mow. Mow explained the specifics of the bond, and Bukele also unveiled plans to create a new, crypto-friendly municipality called Bitcoin City. 

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