Hyperbitcoinization: El Salvador Is All Set To Become The Crypto Center Of The World
On Sunday, El Salvador announced that it had inked key partnership deals with leading firms, Bitfinex and Blockstream on its road towards hyperbitcoinization.
Creating A Friendly Regulatory Framework
In the front deal with Ifinex, the parent company of trading platform Bitfinex, the company announced that it would assist El Salvador with the creation of a crypto-friendly regulatory framework in addition to providing its crypto trading services to Salvadorans.
“iFinex will be tasked with the bringing its years of expertise operating a digital asset exchange, and various activities in the cryptocurrency economy,” the announcement reads. “iFinex will help the El Salvador Government to create and implement appropriate balance cryptocurrency laws, regulations, rules, and guidelines,” it continued.
The move, according to iFinex is aimed at promoting the growth of the cryptocurrency sector in the central American state even as the company looks forward to receiving its first operating license.
$1 Billion In Tokenized Bonds
This is coming as Blockstream, a blockchain technology company that builds a range of products and services for the custody of digital assets announced on the same day its commitment to help El Salvador in issuing a $1 Billion Bitcoin Bond through the Liquid Network.
“Today, the president of El Salvador and I have announced that they will be issuing a $1 billion US “Bitcoin Bond” on the Liquid Network,” said Samson Mow, Chief Strategy Officer of Blockstream.
The bond, which has been on El Salvador’s agenda even before the Bitcoin law was adopted, is aimed at accelerating the adoption of Bitcoin and bringing about a new financial system built on top of Bitcoin.
The $1 Billion will be split into two phases. $500M will go into purchasing more Bitcoin while the rest will go into building additional Bitcoin mining infrastructure in the country.
Mow further said that special dividends would be dispersed to bondholders annually using Blockstream’s Asset Management Platform (AMP) after a portion of the asset had been sold. In kickstarting the program and ensuring easier access to the bond, buyers will be allowed to invest as little as $100.
He also lauded El Salvador’s collaboration with iFinex noting that once Bitfinex receives a license, bonds will be easily traded 24/7 fostering the inflow of investment capital from around the globe.
Looking Forward
El Salvador continues to carve out a niche for itself in the global cryptocurrency industry, with President Bukele’s insatiable appetite for Bitcoin continuing to surge.
On Saturday, Bukele announced plans to build a “Bitcoin City” fully funded by Bitcoin’s proceeds and will feature a Huge Bitcoin symbol in its largest plaza. This comes only weeks after he announced the construction of 20 schools and a $4M veterinary hospital, initiatives that are already progressing at an impressive rate.
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