El Salvador $1 billion Bitcoin bond may be issued between 14 – 20 March. The 10-year bond will offer +6.5% per annum for 10 years (approximately +$1.65 billion).
$500 million will be used to buy bitcoins, the remaining $500 million will be spent on Bitcoin mining infrastructure as part of ‘Bitcoin City.’
Finance Minister Alejandro Zelaya said, “We believe that between March 15 and 20 is the right timing, we have the tools almost finished. But the international context will tell us… I didn’t expect the war in Ukraine.”
El Salvador bond is called EBB1 (El Salvador Bitcoin Bond 1). It has been suggested that at least 30% of the $1 billion were ‘verbally reserved.’
Since the adoption of Bitcoin in El Salvador, statistics from Chivo wallets in 2021 showed approximately 65,000 transactions were carried per second.
The new bitcoin bond is also referred to as the ‘volcano bond.’ Nayib Armando Bukele Ortez, President of El Salvador has great ambitions when it comes to cryptocurrencies.
El Salvador Bitcoin City
Bukele wishes to finance ‘Bitcoin City’ at the Honduran border. Bitcoin mining will be powered by geothermal energy from a volcano that is near the location of bitcoin city (Conchagua volcano), hence the name ‘volcano bond.’
President Nayib Bukele described his plans for Bitcoin City in November:
“Bitcoin City’ is not only an idea, it will also be a reality in El Salvador. It will have residential areas, shopping malls, restaurants, a port, everything around Bitcoin.
“In ‘Bitcoin City’ we will have mining, agriculture, culture and sport. When we are no longer there [depart from the world], this [the city] will last and everyone will be able to see the city. We won’t have income tax, forever. No income taxes, no property tax, no taxes on hiring, zero municipal taxes and zero CO2 emissions.
“The only taxes they will have in ‘Bitcoin City’ is VAT, half will be used to pay the bonds of the municipality and the rest for public infrastructure and the maintenance of the city.”
source: gobierno del el salvador
Bukele strongly believes Bitcoin City is ‘the evolution of mankind.’
El Salvador chose Liquid Network (blockstream.com) for the upcoming one billion dollars Bitcoin bond. The Government is planning to license Bitfinex Securities to process as well as list the bond issuance.
iFinex Inc. is the parent company of Bitfinex.
This means Blockstream Mining Note (BMN) and Exordium (EXO) tokens can be listed on the exchange that is fully regulated by El Salvador.
The architecture of the tokenized debt issuance was designed by Samson Mow and Jesse Knutson. The annual payouts of +6.5% will be issued via Blockstream’s Asset Management Platform (AMP).
Investors will also enjoy a Bitcoin Dividend that will be distributed via AMP.
How will El Salvador Bond Work in Liquid?
Liquid Network is offering a sidechain to the Bitcoin network. The sidechain runs in parallel to the BTC network using a 2-way peg. In the Liquid Network BTC will be referred to as L-BTC.
Additionally, Liquid uses confidential transactions. The amounts and assets in the transactions are only available to those involved in the transaction and any third parties that were designed to access the transactions.
source: blockstream
Only the receiver can decrypt the amount that was sent. The receiver that holds the private key Private Key Private keys or secret keys are defined as a string of characters used with an algorithm to both encrypt and decrypt code. The primary application of this alphanumeric key is designed to send or access cryptocurrency securely.As its name suggests, secret keys are only shared with the key’s generator, helping provide a layer of security against hackings or theft.Private keys are stored in digital wallets. When a cryptocurrency transaction is initiated, the wallet generates a digital signature using the private key. This ensures that a transaction is valid, because the only way to send a transaction is to use a legitimate digital signature. In essence, the entity or individual in charge of a cryptocoin’s private key is the effective owner of that coin. If a user permanently loses access to their private key, they permanently lose access to their funds.Private Keys ExplainedPrivate key encryption is referred to as symmetric encryption. As such, the same private key is used for both encryption and decryption purposes. A private key is complex by nature and therefore composed of long, randomly generated number that cannot easily be replicated or guessed. Since only one key is involved, the process is fast and simple.Private keys can be stored in hot (internet-connected) wallets or cold (non-internet-connected) wallets, or printed on paper. However, private keys must be entered into an internet-connected device in order to send a cryptocurrency transaction.Private keys should be changed frequently to avoid being leaked or stolen. This is the greatest issue associated with such levels of encryption. Proper measures should be taken to ensure private keys stay out of the wrong hands. Private keys or secret keys are defined as a string of characters used with an algorithm to both encrypt and decrypt code. The primary application of this alphanumeric key is designed to send or access cryptocurrency securely.As its name suggests, secret keys are only shared with the key’s generator, helping provide a layer of security against hackings or theft.Private keys are stored in digital wallets. When a cryptocurrency transaction is initiated, the wallet generates a digital signature using the private key. This ensures that a transaction is valid, because the only way to send a transaction is to use a legitimate digital signature. In essence, the entity or individual in charge of a cryptocoin’s private key is the effective owner of that coin. If a user permanently loses access to their private key, they permanently lose access to their funds.Private Keys ExplainedPrivate key encryption is referred to as symmetric encryption. As such, the same private key is used for both encryption and decryption purposes. A private key is complex by nature and therefore composed of long, randomly generated number that cannot easily be replicated or guessed. Since only one key is involved, the process is fast and simple.Private keys can be stored in hot (internet-connected) wallets or cold (non-internet-connected) wallets, or printed on paper. However, private keys must be entered into an internet-connected device in order to send a cryptocurrency transaction.Private keys should be changed frequently to avoid being leaked or stolen. This is the greatest issue associated with such levels of encryption. Proper measures should be taken to ensure private keys stay out of the wrong hands. Read this Term can share it with any third party he or she wishes such as validation.
which hides the amounts and asset types within transactions from all third parties. This information is only known by the parties involved in the transaction and other third parties they designate.
Liquid transactions use confidential addresses that include a public blinding key and a base address. Only the receiver alone can decrypt the amount sent in a transaction.
The receiver can share the private blinding key with any third party in order for that party to be able to validate the amount and asset type.
IMF Warns El Salvador
$800 million are due for maturity in January 2023. If the Bitcoin Bitcoin Bitcoin is the world’s first digital currency that was created in 2009 by a mysterious entity named Satoshi Nakamoto. As a digital currency or cryptocurrency, Bitcoin operates without a central bank or single administrator. Instead, Bitcoin can be sent via a Peer-to-Peer (P2P) networking, devoid of intermediaries.Bitcoins are not issued or backed by any governments or banks, and Bitcoin is not considered to be legal tender, although they do have status as an acknowledged transfer of value in some jurisdictions. Rather than composing a physical currency, Bitcoins are pieces of code that can be sent and received across a kind of distributed ledger network called a blockchain. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called mining. In exchange for mining, the computers receive rewards in the form of new Bitcoins. Mining grows increasingly difficult over time, and the rewards get smaller and smaller. There is a total of 21 million Bitcoins. As of May 2020, there are 18.3 million Bitcoins in circulation. This number changes approximately every 10 minutes when new blocks are mined. Presently, each new block adds 12.5 bitcoins into circulation.Since its inception, Bitcoin has remained the most popular and largest cryptocurrency in terms of market cap in the world. Bitcoin’s popularity has contributed significantly to the release of thousands of other cryptocurrencies, called “altcoins.” While the crypto market was originally hegemonic, today’s landscape features countless altcoins.Bitcoin ControversyBitcoin has been extremely controversial since its original launch. Given its mercurial nature, Bitcoin has been criticized for its use in illegal transactions and money laundering.As its impossible to trace, these attributes make Bitcoin the ideal vehicle for illicit behavior. Moreover, critics point to its high electricity consumption for mining, rampant price volatility, and thefts from exchanges. Bitcoin has been seen as a speculative bubble given its lack of oversight. The crypto has weathered multiple collapses and survived over a decade so far. Unlike its launch back in 2009, Bitcoin today is viewed far differently and is much more accepted by merchants and other entities. Bitcoin is the world’s first digital currency that was created in 2009 by a mysterious entity named Satoshi Nakamoto. As a digital currency or cryptocurrency, Bitcoin operates without a central bank or single administrator. Instead, Bitcoin can be sent via a Peer-to-Peer (P2P) networking, devoid of intermediaries.Bitcoins are not issued or backed by any governments or banks, and Bitcoin is not considered to be legal tender, although they do have status as an acknowledged transfer of value in some jurisdictions. Rather than composing a physical currency, Bitcoins are pieces of code that can be sent and received across a kind of distributed ledger network called a blockchain. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called mining. In exchange for mining, the computers receive rewards in the form of new Bitcoins. Mining grows increasingly difficult over time, and the rewards get smaller and smaller. There is a total of 21 million Bitcoins. As of May 2020, there are 18.3 million Bitcoins in circulation. This number changes approximately every 10 minutes when new blocks are mined. Presently, each new block adds 12.5 bitcoins into circulation.Since its inception, Bitcoin has remained the most popular and largest cryptocurrency in terms of market cap in the world. Bitcoin’s popularity has contributed significantly to the release of thousands of other cryptocurrencies, called “altcoins.” While the crypto market was originally hegemonic, today’s landscape features countless altcoins.Bitcoin ControversyBitcoin has been extremely controversial since its original launch. Given its mercurial nature, Bitcoin has been criticized for its use in illegal transactions and money laundering.As its impossible to trace, these attributes make Bitcoin the ideal vehicle for illicit behavior. Moreover, critics point to its high electricity consumption for mining, rampant price volatility, and thefts from exchanges. Bitcoin has been seen as a speculative bubble given its lack of oversight. The crypto has weathered multiple collapses and survived over a decade so far. Unlike its launch back in 2009, Bitcoin today is viewed far differently and is much more accepted by merchants and other entities. Read this Term bond is will fail to interest investors El Salvador may struggle to repay the debt.
The International Monetary Fund (IMF) wanted El Salvador that it may struggle obtaining a loan from the IMF as long as Bitcoin legal tender status is not reversed.
El Salvador is waiting for the results of the first of its kind BTC bond, dismissing the IMF warnings. Since Bitcoin received its legal status in El Salvador tourism has been on the rise according to official Government figures.
source: El Salvador
Morena Valdez, heading the Ministry of Tourism (MITUR) said, “Tourism was one of the first sectors where it was possible to verify the potential.
“The implementation of Bitcoin benefited the sector. More tourists and investors have come to see how cryptocurrency works.
“We did a poll to verify the activity, according to the before and after of Bitcoin. The tourism sector increased, in November and December, more than 30%.”
It has been reported that institutional investors may sit on the fence in the upcoming Bitcoin bond issuance. El Salvador may therefore relay on the retail market where anyone can participate. Private investors may join the sale with as little as $100.
Monitoring the outcome of the bond’s sales may be a focal point in the transformation of traditional financial products into the digital assets.
The benefits of participating in the Bitcoin bond are gaining exposure to cryptocurrencies, thus benefiting form any appreciation in BTC.
Should Turkey adopts Shiba Inu (SHIB), if the bond is marked a great success Turkey may be next in line.
El Salvador $1 billion Bitcoin bond may be issued between 14 – 20 March. The 10-year bond will offer +6.5% per annum for 10 years (approximately +$1.65 billion).
$500 million will be used to buy bitcoins, the remaining $500 million will be spent on Bitcoin mining infrastructure as part of ‘Bitcoin City.’
Finance Minister Alejandro Zelaya said, “We believe that between March 15 and 20 is the right timing, we have the tools almost finished. But the international context will tell us… I didn’t expect the war in Ukraine.”
El Salvador bond is called EBB1 (El Salvador Bitcoin Bond 1). It has been suggested that at least 30% of the $1 billion were ‘verbally reserved.’
Since the adoption of Bitcoin in El Salvador, statistics from Chivo wallets in 2021 showed approximately 65,000 transactions were carried per second.
The new bitcoin bond is also referred to as the ‘volcano bond.’ Nayib Armando Bukele Ortez, President of El Salvador has great ambitions when it comes to cryptocurrencies.
El Salvador Bitcoin City
Bukele wishes to finance ‘Bitcoin City’ at the Honduran border. Bitcoin mining will be powered by geothermal energy from a volcano that is near the location of bitcoin city (Conchagua volcano), hence the name ‘volcano bond.’
President Nayib Bukele described his plans for Bitcoin City in November:
“Bitcoin City’ is not only an idea, it will also be a reality in El Salvador. It will have residential areas, shopping malls, restaurants, a port, everything around Bitcoin.
“In ‘Bitcoin City’ we will have mining, agriculture, culture and sport. When we are no longer there [depart from the world], this [the city] will last and everyone will be able to see the city. We won’t have income tax, forever. No income taxes, no property tax, no taxes on hiring, zero municipal taxes and zero CO2 emissions.
“The only taxes they will have in ‘Bitcoin City’ is VAT, half will be used to pay the bonds of the municipality and the rest for public infrastructure and the maintenance of the city.”
source: gobierno del el salvador
Bukele strongly believes Bitcoin City is ‘the evolution of mankind.’
El Salvador chose Liquid Network (blockstream.com) for the upcoming one billion dollars Bitcoin bond. The Government is planning to license Bitfinex Securities to process as well as list the bond issuance.
iFinex Inc. is the parent company of Bitfinex.
This means Blockstream Mining Note (BMN) and Exordium (EXO) tokens can be listed on the exchange that is fully regulated by El Salvador.
The architecture of the tokenized debt issuance was designed by Samson Mow and Jesse Knutson. The annual payouts of +6.5% will be issued via Blockstream’s Asset Management Platform (AMP).
Investors will also enjoy a Bitcoin Dividend that will be distributed via AMP.
How will El Salvador Bond Work in Liquid?
Liquid Network is offering a sidechain to the Bitcoin network. The sidechain runs in parallel to the BTC network using a 2-way peg. In the Liquid Network BTC will be referred to as L-BTC.
Additionally, Liquid uses confidential transactions. The amounts and assets in the transactions are only available to those involved in the transaction and any third parties that were designed to access the transactions.
source: blockstream
Only the receiver can decrypt the amount that was sent. The receiver that holds the private key Private Key Private keys or secret keys are defined as a string of characters used with an algorithm to both encrypt and decrypt code. The primary application of this alphanumeric key is designed to send or access cryptocurrency securely.As its name suggests, secret keys are only shared with the key’s generator, helping provide a layer of security against hackings or theft.Private keys are stored in digital wallets. When a cryptocurrency transaction is initiated, the wallet generates a digital signature using the private key. This ensures that a transaction is valid, because the only way to send a transaction is to use a legitimate digital signature. In essence, the entity or individual in charge of a cryptocoin’s private key is the effective owner of that coin. If a user permanently loses access to their private key, they permanently lose access to their funds.Private Keys ExplainedPrivate key encryption is referred to as symmetric encryption. As such, the same private key is used for both encryption and decryption purposes. A private key is complex by nature and therefore composed of long, randomly generated number that cannot easily be replicated or guessed. Since only one key is involved, the process is fast and simple.Private keys can be stored in hot (internet-connected) wallets or cold (non-internet-connected) wallets, or printed on paper. However, private keys must be entered into an internet-connected device in order to send a cryptocurrency transaction.Private keys should be changed frequently to avoid being leaked or stolen. This is the greatest issue associated with such levels of encryption. Proper measures should be taken to ensure private keys stay out of the wrong hands. Private keys or secret keys are defined as a string of characters used with an algorithm to both encrypt and decrypt code. The primary application of this alphanumeric key is designed to send or access cryptocurrency securely.As its name suggests, secret keys are only shared with the key’s generator, helping provide a layer of security against hackings or theft.Private keys are stored in digital wallets. When a cryptocurrency transaction is initiated, the wallet generates a digital signature using the private key. This ensures that a transaction is valid, because the only way to send a transaction is to use a legitimate digital signature. In essence, the entity or individual in charge of a cryptocoin’s private key is the effective owner of that coin. If a user permanently loses access to their private key, they permanently lose access to their funds.Private Keys ExplainedPrivate key encryption is referred to as symmetric encryption. As such, the same private key is used for both encryption and decryption purposes. A private key is complex by nature and therefore composed of long, randomly generated number that cannot easily be replicated or guessed. Since only one key is involved, the process is fast and simple.Private keys can be stored in hot (internet-connected) wallets or cold (non-internet-connected) wallets, or printed on paper. However, private keys must be entered into an internet-connected device in order to send a cryptocurrency transaction.Private keys should be changed frequently to avoid being leaked or stolen. This is the greatest issue associated with such levels of encryption. Proper measures should be taken to ensure private keys stay out of the wrong hands. Read this Term can share it with any third party he or she wishes such as validation.
which hides the amounts and asset types within transactions from all third parties. This information is only known by the parties involved in the transaction and other third parties they designate.
Liquid transactions use confidential addresses that include a public blinding key and a base address. Only the receiver alone can decrypt the amount sent in a transaction.
The receiver can share the private blinding key with any third party in order for that party to be able to validate the amount and asset type.
IMF Warns El Salvador
$800 million are due for maturity in January 2023. If the Bitcoin Bitcoin Bitcoin is the world’s first digital currency that was created in 2009 by a mysterious entity named Satoshi Nakamoto. As a digital currency or cryptocurrency, Bitcoin operates without a central bank or single administrator. Instead, Bitcoin can be sent via a Peer-to-Peer (P2P) networking, devoid of intermediaries.Bitcoins are not issued or backed by any governments or banks, and Bitcoin is not considered to be legal tender, although they do have status as an acknowledged transfer of value in some jurisdictions. Rather than composing a physical currency, Bitcoins are pieces of code that can be sent and received across a kind of distributed ledger network called a blockchain. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called mining. In exchange for mining, the computers receive rewards in the form of new Bitcoins. Mining grows increasingly difficult over time, and the rewards get smaller and smaller. There is a total of 21 million Bitcoins. As of May 2020, there are 18.3 million Bitcoins in circulation. This number changes approximately every 10 minutes when new blocks are mined. Presently, each new block adds 12.5 bitcoins into circulation.Since its inception, Bitcoin has remained the most popular and largest cryptocurrency in terms of market cap in the world. Bitcoin’s popularity has contributed significantly to the release of thousands of other cryptocurrencies, called “altcoins.” While the crypto market was originally hegemonic, today’s landscape features countless altcoins.Bitcoin ControversyBitcoin has been extremely controversial since its original launch. Given its mercurial nature, Bitcoin has been criticized for its use in illegal transactions and money laundering.As its impossible to trace, these attributes make Bitcoin the ideal vehicle for illicit behavior. Moreover, critics point to its high electricity consumption for mining, rampant price volatility, and thefts from exchanges. Bitcoin has been seen as a speculative bubble given its lack of oversight. The crypto has weathered multiple collapses and survived over a decade so far. Unlike its launch back in 2009, Bitcoin today is viewed far differently and is much more accepted by merchants and other entities. Bitcoin is the world’s first digital currency that was created in 2009 by a mysterious entity named Satoshi Nakamoto. As a digital currency or cryptocurrency, Bitcoin operates without a central bank or single administrator. Instead, Bitcoin can be sent via a Peer-to-Peer (P2P) networking, devoid of intermediaries.Bitcoins are not issued or backed by any governments or banks, and Bitcoin is not considered to be legal tender, although they do have status as an acknowledged transfer of value in some jurisdictions. Rather than composing a physical currency, Bitcoins are pieces of code that can be sent and received across a kind of distributed ledger network called a blockchain. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called mining. In exchange for mining, the computers receive rewards in the form of new Bitcoins. Mining grows increasingly difficult over time, and the rewards get smaller and smaller. There is a total of 21 million Bitcoins. As of May 2020, there are 18.3 million Bitcoins in circulation. This number changes approximately every 10 minutes when new blocks are mined. Presently, each new block adds 12.5 bitcoins into circulation.Since its inception, Bitcoin has remained the most popular and largest cryptocurrency in terms of market cap in the world. Bitcoin’s popularity has contributed significantly to the release of thousands of other cryptocurrencies, called “altcoins.” While the crypto market was originally hegemonic, today’s landscape features countless altcoins.Bitcoin ControversyBitcoin has been extremely controversial since its original launch. Given its mercurial nature, Bitcoin has been criticized for its use in illegal transactions and money laundering.As its impossible to trace, these attributes make Bitcoin the ideal vehicle for illicit behavior. Moreover, critics point to its high electricity consumption for mining, rampant price volatility, and thefts from exchanges. Bitcoin has been seen as a speculative bubble given its lack of oversight. The crypto has weathered multiple collapses and survived over a decade so far. Unlike its launch back in 2009, Bitcoin today is viewed far differently and is much more accepted by merchants and other entities. Read this Term bond is will fail to interest investors El Salvador may struggle to repay the debt.
The International Monetary Fund (IMF) wanted El Salvador that it may struggle obtaining a loan from the IMF as long as Bitcoin legal tender status is not reversed.
El Salvador is waiting for the results of the first of its kind BTC bond, dismissing the IMF warnings. Since Bitcoin received its legal status in El Salvador tourism has been on the rise according to official Government figures.
source: El Salvador
Morena Valdez, heading the Ministry of Tourism (MITUR) said, “Tourism was one of the first sectors where it was possible to verify the potential.
“The implementation of Bitcoin benefited the sector. More tourists and investors have come to see how cryptocurrency works.
“We did a poll to verify the activity, according to the before and after of Bitcoin. The tourism sector increased, in November and December, more than 30%.”
It has been reported that institutional investors may sit on the fence in the upcoming Bitcoin bond issuance. El Salvador may therefore relay on the retail market where anyone can participate. Private investors may join the sale with as little as $100.
Monitoring the outcome of the bond’s sales may be a focal point in the transformation of traditional financial products into the digital assets.
The benefits of participating in the Bitcoin bond are gaining exposure to cryptocurrencies, thus benefiting form any appreciation in BTC.
Should Turkey adopts Shiba Inu (SHIB), if the bond is marked a great success Turkey may be next in line.
