Bitfinex will process the issuance of the tokenized bond, which was developed by Blockstream, CoinDesk reported.
El Salvador, the first country in the world to adopt Bitcoin as legal tender, is going to build Bitcoin City, an entire city based on the flagship cryptocurrency, President Nayib Bukele announced at a public event during Bitcoin Week in El Salvador. The city will be located near a volcano along the Gulf of Fonseca.
The president added that the government planned on situating a power plant by the volcano to supply the city and miners with energy.
A full-fledged metropolis
According to president Bukele, Bitcoin City will have a commercial district, residential areas, restaurants, a port service, railways, and access to an airport. The city will have the shape of a coin (laid out in a circle). There will be a plaza in the downtown area, which will host a gigantic Bitcoin symbol.
No taxes in Bitcoin City
Perhaps the best part of the plan: the local government will not charge any taxes in the city. Not on payroll, profit, income, property, or anything else!
Liquid Network to host Bitcoin bond
El Salvador plans to issue a bond in the amount of $1 billion. The financial instrument will be hosted by Liquid Network and developed by Blockstream. Half of the amount will be invested to secure the required energy and Bitcoin mining infrastructure. The rest will be used to buy more Bitcoin. With that, the Central American country’s Bitcoin stash will drop to just under 2,000 BTC at its recent trading price of just under $60,000.
El Salvador passes new securities law to process issuance
To process the issuance, the country will pass a securities law and grant a license to Bitfinex Securities according to a press release by Blockstream. According to Samson Mow, Blockstream’s chief strategy officer, the Bitcoin bond will be denominated in USD for one decade with an initial payment of 6.5%, Bloomberg reported.
1 BTC to change hands for $1M in 5 years
After a lock-up 5-year term, the country will start selling Bitcoin and paying bond holders an added dividend. Mow added that the annual percentage yield will have reached 146% in ten years. This prediction is based on some Blockstream models, according to which 1 Bitcoin will be trading for $1 million in the next five years.
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