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El Salvador’s 10-year Bitcoin (BTC) bond is here this week, which is at stake

Waiting for El Salvador’s Bitcoin bonds may end this week! Bitcoin bonds will be available for purchase this week, according to the latest report from the Financial Times!

El Salvador’s President Nayib Bukele calls these Bitcoin bonds a gateway to help relieve the country’s financial burden. Individual and institutional investors around the world can participate in the purchase of these bonds. President Nayib Bukele said he plans to raise at least $ 1 billion. These Bitcoin bonds are used to pay off the country’s growing debt.

However, given the lack of interest of institutional investors from overseas markets, it is at stake. Some institutional investors say they are only looking at onlooker bonds, and buyers are individual investors.

Bitcoin Bond Details

The 10-year Bitcoin “volcanic bond” has been used in a major experiment by President Nayib Bukele. As mentioned earlier, the $ 1 billion in revenue received from the issuance of these bonds will be used to fund the new “Bitcoin City” powered by volcanic geothermal energy. Near the Honduras border.

The country will also use these funds to buy Bitcoin (BTC) and add it to its reserves. Experts say the additional funding will help the country’s sovereign debt restructuring. However, six months after the company made a legal bid for Bitcoin, it is still struggling to promote the use of Bitcoin.

Earlier, the El Salvadoran government claimed that Bitcoin proved to be a convenient way for the country’s large immigrant labor force to send money home, but central bank data show that in January. Only 2% of transfers were sent via the Bitcoin Digital Wallet.

Senior bank executives also said that less than 0.01% of debt payments were in Bitcoin (BTC). Another said the number of Bitcoin transactions is “irrelevant”.

This is the idea and danger of the El Salvadorans

A poll conducted by Central American University last December showed that 70% of El Salvadorans trust Bitcoin very little and believe it will bring great benefits to foreigners.

“I don’t know how to use it. I’m afraid to go up and down and it’s very unstable. It’s a pretty dangerous bet by the government.”

But not everyone is afraid! Hosue Pais, owner of El Salvador’s taxi business, is enthusiastic about the president’s plans, and 36-year-old Pais has already accepted Bitcoin payments from tourists, worth $ 200 in Bitcoin bonds. It says to buy.

“Curiosity attracts me. First, I’m going to do it to support the country. Second, it’s a big and attractive bet.”

The question is whether there is enough participation to force financial institutions into this game. Carlos Asebed, the former governor of the Central Bank of El Salvador, said:

“If this fails, many doors will close. This issue will define a lot.”

Bukele also needs to bring some public clarity about how to buy Bitcoin and his economic roadmap to free the country from debt. After Bukele made Bitcoin legal tender last September, the status of its sovereign debt became junk. The IMF also urged El Salvador to revoke Bitcoin’s status.

Disclaimer

The content presented may contain the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication is not responsible for any personal financial loss.

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