El Salvador government strikes deal with Bitfinex, Blockstream to issue $1 billion bitcoin bond

El Salvador government strikes deal with Bitfinex, Blockstream to issue $1 billion bitcoin bond

El Salvador has struck a deal with crypto firms Blockstream and iFinex to advance its efforts in the bitcoin market.

The country is set to issue so-called Bitcoin bonds to "accelerate hyperbitcoiization and bring about a new financial system on top of Bitcoin," according to Blockstream.

The county will issue $1 billion through a bitcoin bond via Blockstream's Liquid Network. The proceeds of the bond could support the development of volcano powered bitcoin mining.

"This bond offering is something we think will be attractive to a wide range of investors ranging from cryptocurrency investors, investors seeking yield, HODLers, and ordinary people," Blockstream said in a blog post. "We believe this bond has the potential to accelerate hyperbitcoinization and bring about a new financial system built on top of Bitcoin."

El Salvador, which deemed Bitcoin legal tender in the country earlier this year, is set to grant Bitfinex's parent company the country's first crypto license.

"Finex is focusing on helping the government of writing a digital tokenized securities law and the government will provide to iFinex the first license in that new regulatory framework so that the ES government will issue and launch their volcano mining bond on bitfinex securities," Paolo Ardoino of Bitfinex said in a statement to The Block.

El Salvador President Nayib Bukele said this past summer that he would leverage the country's volcanos to mine bitcoin via "100% clean, 100% renewable, 0 emissions energy."

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