El Salvador has announced the launch of its Bitcoin bond next month. Salvadorans are riding the wave of institutional Bitcoin adoption, fueling a bullish outlook among investors.
El Salvador plans on issuing its first Bitcoin bond in March 2022. The Salvadoran Finance Minister, Alejandro Zelaya told a local news show that the government plans to issue the Bitcoin bond between March 15 and March 20.
Zelaya was quoted as saying:
If we really want to build this country, we have to invest in it like this.
The Salvadoran Bitcoin Bond will pay investors 6.5% per annum. $500 million raised from the bond issuance will be used for Bitcoin mining and developing renewable energy from volcanoes, another $500 million for buying more Bitcoin.
El Salvador’s government plans to issue $1 billion for the first bond and expects it to be oversubscribed by an additional $500 million. The minimum purchase is $100, and investors can directly buy without involving a broker.
The Bitcoin bond would be issued on Blockstream’s Liquid Network sidechain.
Salvador’s move to launch a Bitcoin bond is timed in accordance with the rising corporate adoption of the asset. Firms are keen on adding Bitcoin to their balance sheet; recent Wells Fargo and JP Morgan reports have affirmed a bullish outlook on BTC price.
Analysts at FSInsights recently evaluated the Bitcoin price trend and set a target of $222,000 for the end of 2022.
FXStreet analysts believe that Bitcoin price could stumble on track to $50,000.
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