El Salvador Keeps Plans to Issue Bitcoin Bonds

In September 2021, the government of El Salvador enacted a law recognizing Bitcoin as a legal tender. The following year, the country’s officials announced their plans to issue BTC bonds to raise $1 billion.

This funding will go towards purchasing more cryptocurrency and expanding mining infrastructure in the Latin American nation. In January 2023, the El Salvadoran parliament passed a bill establishing a mechanism for issuing these bonds.

This week, Vice President Felix Ulloa reaffirmed that the government has no intention of repealing the law recognizing Bitcoin as a means of payment. The issuance of bonds will only occur if current president Nayib Bukele wins the upcoming elections, as he was the driving force behind the legalization of cryptocurrency.

Ulloa also mentioned that the Securities and Exchange Commission (SEC), which recently approved applications for exchange-traded crypto funds (ETFs), considers BTC to be a reliable investment instrument.

The US government is no longer wary of the potential risks associated with investing in digital currency, such as manipulation and fraud.