60
Since Bitcoin became legal tender in El Salvador, the country has been on a wild ride, with the first historical double digit GDP growth ever established in 2021 with a cracking 10.3%! Reason to continue that winning strike with 52 proposed legal reforms that call for less bureaucracy, less red tape and tax incentives. All to make El Salvador one of the most free countries on Earth.
President Najib Bukele has achieved the unachieveable: growing the country's GDP at +10%, not even China did that during its heydays. It has made him one of the most controversial public figures of 2021, and with his future plans he could beat that record in 2022. His latest idea is to offer citizenship to foreign investors who decide to invest their money into El Salvador.
"I’m sending 52 legal reforms to congress, to remove red tape, reduce bureaucracy, create tax incentives, and citizenship in exchange for investments, new securities laws, stability contracts, etc. The plan is simple: as the world falls into tyranny, we’ll create a haven for freedom." Nayib Bukele (@nayibbukele) February 20, 2022.
While the world is falling into madness, Najib Bukele aims to make El Salvador one of the most freedom-centric countries, a movement that started when he made Bitcoin legal tender aside the US Dollar. It gave him love from the crypto community and hate from the IMF and some US senators. They just don't want a second country to follow, which is now unavoidable.
The war between Russia and Ukraine will not convince crypto exchanges to shut down their operations to punish innocent Russian citizens who don't support Putin's insane invasion of a sovereign country in the first place. Crypto currencies actually solve Ukraines immediate need for capital and Russian people can use it as well, whilst being disconnected from Swift's global financial telecommunications network.
This month, El Salvador will launch its much anticipated Bitcoin Volcanic Bonds, to finance the build of the first Bitcoin city.
What will the world's first Bitcoin city look like?
The circular city will be built at the base of the Conchagua Volcano in the country's eastern region of La Union, and it will use the volcano's geothermal energy to power Bitcoin mining.
The new city will include residential and commercial areas, museums, entertainment, bars, restaurants,... and will be funded by the 1 billion dollar Bitcoin backed bond.
What is El Salvador's Bitcoin Bond?
The country will issue a 1 billion dollar Bitcoin backed bond, of which half will be converted to Bitcoin, and the other half will be invested in Bitcoin mining infrastructure.
The 10-year bond will carry a coupon of 6.5, which is well below the 13.5 interest El Salvador currently needs to pay out. Bukele's strategy is to go long in Bitcoin, as he plans to pay of the bond with profits made through Bitcoin sales.
Bitfinex is the book runner for the bonds, which will be sold in 100 tranches, and trading 24/7.
We will inform you soon about the launch.
