El Salvador’s government continues with plans to issue Bitcoin bonds by preparing 20 bills to provide a legal framework, according to a report by CoinTelegraph on Wednesday.

  • Alejandra Zelaya head of the Treasury stated that the bills will provide regulations relating to the issuance of securities as cryptocurrency to enhance the viability of the Bitcoin bonds.
  • The $1 billion sought by the bond issuance would be used to finance the Bitcoin City Initiative that is set to provide digital and technological education, geothermal energy, and efficient and sustainable transport.
  • Zelaya also stated that there is a huge interest in the Bitcoin bond from investors as it expands exposure to BTC and a 10-year maturity of 6.5% interest.
  • The issuance of Bitcoin bonds does not mean El Salvador will not participate in traditional finance. Zelaya further clarified that they were not going to abandon the traditional market.

Recognizable partners with El Salvador in the development of the Volcano Bonds include blockchain developer Blockstream and iFinex, closely linked to stablecoin Tether (USDT). BTC USD down -0.36%.