Making an important announcement, the president of El Salvador said that their country would go ahead with the issuance of a $1 billion US “Bitcoin Bond” on the network of Liquid. The total money will be divided between Bitcoin allocation ($500m), and the rest of $500m will be spent on infrastructure that will help in the energy requirement and mining operations of the digital currency. In addition, El Salvador will also create a law related to securities and issue a license that will help the processing of Bond issuance by Bitfinex Securities. This will ultimately pave the way for the listing of the tokens on the exchange of El Salvador.
This close collaboration between the vice president of financial products of Blockstream and the President of El Salvador has given impressive results in terms of Bitcoin Bond and its issuance. This development is sure to present a great opportunity for creating an ecosystem that is based on Bitcoin and allied digital currencies. This is important in order to achieve financial inclusivity, which is one of the basic principles behind the invention of digital currencies.
Bitcoin bonds can become instrumental in changing the fortunes of many investors while providing an opportunity for the country to come up with a financial system that will achieve a more equitable distribution of wealth and money.
There is no doubt that the future of the global financial system lies in the domain of Bitcoin. Such agreements and associations are very fruitful for the future and will definitely enhance the adoption potential of Bitcoin among the wider sections of society. It will be interesting to witness how the investors and users in El Salvador react to this development and whether this policy measure will catalyze the adoption of Bitcoin in the country or not.
