El Salvador's commitment to Bitcoin is only getting stronger in 2022. The government is preparing 20 bills that would allow it to issue BTC bonds that would help fund the Bitcoin City initiative.
“[This is] to provide a legal structure and legal certainty to everyone who buys the Bitcoin bond.”The $1 billion sought by the bond issuance would be used to fund the, which President Bukele has promised will provide “digital and technological education, geothermal energy for the entire city, and efficient and sustainable public transport.”
“We can simply make payments without creating another Eurobond in the traditional market, and we can find a bond that is denominated in dollars and receives payment in Bitcoin.” Zelaya also indicated that there is significant interest in the Bitcoin bond from investors, as it offers exposure to BTC and a 10-year maturity of 6.5% interest.The issuance of Bitcoin bonds would not, however, preclude the Central American nation from participating in traditional finance. Zelaya said, “We are not going to abandon the traditional market.”