El Salvador is planning to issue next year $1 billion in bonds backed by bitcoin, the latest effort by the economically stressed Central American nation to attract crypto capital.
The country this year became the first to adopt bitcoin as a national currency. It plans to sell $1 billion in U.S. dollar-denominated 10-year bonds with a coupon of 6.5%. Half of that money would be used to buy bitcoin
BTCUSD,
El Salvador will issue the bond in partnership with Blockstream, a digital assets infrastructure company based in Canada. The bonds would be issued on blockchain, the digital ledger that allows for trading without traditional intermediaries such as banks.
Some of the funds will go toward building a “Bitcoin City” near the Conchagua volcano that will have no taxes on income, property and capital gains, President Nayib Bukele said over the weekend.
An expanded version of this report appears on WSJ.com.
Also popular on WSJ.com:
Biden to nominate Jerome Powell for second term as Federal Reserve chairman.
JPMorgan’s Jamie Dimon and Tesla’s Elon Musk feud behind the scenes.
Hot
No comment on record. Start new comment.