El Salvador avoids default and is ready to launch a bond guaranteed by bitcoin

El Salvador avoids default and is ready to launch a bond guaranteed by bitcoin
El Salvador avoids default and is ready to launch a bond guaranteed by bitcoin
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In spite of the prophets of doom, El Salvador has regularly repaid with interest an 800 million dollar bond maturing today Tuesday 24. The president of the Central American country announced it via Twitter Nayib Bukele.

The reason for so much skepticism is simple: El Salvador is the first country to have adopted as fiat currency bitcoin on September 7, 2021, alongside the US dollar. Since bitcoin lost more than 60% last year and the State has 2,300 of them on hand for an estimated loss of about 65 million dollars, many said that El Salvador would end up in bankruptcy.

The Vulcano bond guaranteed by bitcoin is coming

But that’s not all. Earlier this month, parliament passed a law that will provide the legal framework for issuing a bitcoin-backed bond, also known as a Vulcano bond.

The next important bond maturity is scheduled for 2025 while the presidential elections will be in 2024. In short, Bukele should be able to campaign without the danger of an impending default.

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Bukele expects to raise up to $1 billion in Volcano bonds and says his administration will use the proceeds to pay off sovereign debt, invest in bitcoin mining infrastructure, buy bitcoin and build a Bitcoin City on the Gulf of Fonseca, south of the capital. (All rights reserved)

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The article is in Italian

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