In a watershed moment for Bitcoin, El Salvador will fund the Bitcoin City initially using Bitcoin bonds on the Liquid Network.
BTC Bonds Back Bitcoin City
El Salvador’s President, Nayib Bukele, announced plans on Nov. 20 to build the world’s first “Bitcoin City,” which will be initially funded by Bitcoin-backed bonds. The news capped off a week-long promotion of BTC in the country.
While speaking at the event, Bukele proclaimed that the new city, planned in the eastern region of La Union would be powered by geothermal energy from the Conchagua Volcano and will not impose any taxes on its residents apart from Value Added Tax (VAT). El Salvador will be issuing a $1 billion US “Bitcoin Bond” on Blockstream’s Liquid Network, which will be split between a $500 million allocation of Bitcoin and a $500 million infrastructure fund for building out energy and Bitcoin mining infrastructure in the region.
“The Bitcoin Bond represents the start of a reformation of capital markets, built on Bitcoin and layer-2 technologies like the Liquid Network. Now, investment capital can flow in from around the globe without friction. Dividends can be distributed to investors instantly, with built-in cryptography to maintain confidentiality. Bonds can be traded 24/7 with other assets like stablecoins, using protocols that help eliminate the need for trust,” mentions BlockStream’s official blog about the tokenized bonds.
As previously reported by BSC News, El Salvador became the first country in the world to adopt Bitcoin as their national currency and accept it as legal tender.
Bitcoin’s price has been going through a slump after hitting a new all-time high of $68,789 on Nov. 10, as per data from CoinMarketCap. Currently, the token trades nearly 15% off the all-time around 59,000, with a market capitalization of $1.21 trillion.
About Bitcoin
Bitcoin is the first cryptocurrency in the world that sprung into existence in 2009 as a result of Satoshi Nakamoto’s Bitcoin whitepaper released in 2008. Bitcoin has since become “Digital Gold” and has held its own as the premier cryptocurrency token in the crypto-verse with the largest market capitalization. The total supply of BTC is capped at 21 million tokens, and there is a circulating supply of 18.88 million currently.
Source : solana.news
