El Salvador plans to build a “Bitcoin City” initially funded by a $1B “bitcoin bond”, with $500M to build mining infrastructure and $500M to buy more bitcoin
the long-term play is starting to come into focus https://twitter.com/... Bernhard Mueller / @muellerberndt : Basically the same model MicroStrategy uses: Borrow billions of USD via legacy bonds, buy $BTC. No reason to call this “Bitcoin bonds” besides marketing. https://twitter.com/... @newsasset : Talk about going all in. When you know, you know. https://twitter.com/... Paolo Ardoino / @paoloardoino : . @Liquid_BTC has support for confidential transactions. That's what you would expect in the securities world and that's why is the perfect pick for @bitfinex securities. One of the most important features is that it reduces frontrunning by a good factor. https://blog.blockstream.com/ ... Preston Pysh / @prestonpysh : El Salvador to Issue $1B in Tokenized Bonds on the Liquid Network. Congrats to the @Blockstream team & @nayibbukele. @adam3us @Excellion. https://blog.blockstream.com/ ... Alex Gladstein / @gladstein : If you are a developing country would you rather issue $1 billion of bonds based on your renewable energy reserves or take out a $1 billion loan from the World Bank? https://twitter.com/... Jay Gould / @jaygould : .@nayibbukele announces they will sell a 10-year issue “volcano bond” carrying a 6.5% coupon to take up to $5 billion in #Bitcoin off the market within the next 60 days! https://www.coindesk.com/... Mike Daodas / @mdudas : i have no idea what any of this means lol https://www.theblockcrypto.com/ ...
CoinDeskAndrés Engler
Context & Ripple Effects
El Salvador’s Bitcoin City financing plan follows its legal-tender law and the rollout of Chivo, which offered citizens $30 to join the wallet. The sequence moves the country’s bitcoin policy from payments adoption toward a state-backed capital-and-infrastructure program.
The immediately preceding coverage had already outlined the proposed $1B bond structure; the key significance is the split between mining infrastructure and additional bitcoin purchases, tying a physical buildout to the asset the state is accumulating.
First-order effects
El Salvador’s proposed bond would earmark $500M for mining infrastructure and $500M for bitcoin purchases, making both projects dependent on the same financing vehicle.
The government’s bitcoin strategy expands beyond Chivo-based consumer onboarding into planned investment in mining capacity and direct bitcoin holdings.
Second-order effects
The structure extends the debt-funded bitcoin-acquisition approach associated in the coverage with MicroStrategy from a corporate balance-sheet strategy to a national infrastructure proposal.
Mining infrastructure becomes part of the project’s financing logic rather than a separate industrial investment, linking the city’s buildout and bitcoin exposure.
Third-order effects
If El Salvador carries out the plan, it would establish a more integrated model of national bitcoin policy: legal tender, consumer wallet distribution, sovereign borrowing, asset purchases, and mining infrastructure.
The proposal points to wallet adoption becoming only one layer of a broader state-led crypto infrastructure stack, with financing design determining how far such strategies can extend.
The trend: El Salvador is testing a shift from bitcoin as a payments policy to bitcoin as an asset-backed infrastructure-finance strategy.
We're excited to share our collaboration with the Republic of El Salvador for the #BitcoinBond, an issuance of $1B USD in tokenized bonds on @Liquid_BTC for acquiring #bitcoin and building out energy and mining infrastructure in El Salvador. 🌋⚡️ https://blog.blockstream.com/ ... …
El Salvador wants to build Bitcoin City, which will be free of income, property and capital gains taxes. Are you in? (via @markets) https://www.bloomberg.com/...
“...by using $500 million of the proceeds to buy bitcoin and locking it up for five years, El Salvador is hoping that by taking so much of the cryptocurrency out of circulation for so long it helps contribute to bitcoin's price appreciation...” 1/2 https://www.coindesk.com/...
This would be comical if it wasn't going to ultimately cause a lot of hardship to the Salvadoran public, who didn't exactly sign up to be a crypto fascist experiment by bro dictator here https://twitter.com/...
El Salvador intends to issue the world's first sovereign Bitcoin bonds and build Bitcoin City, which will be free of income, property and capital gains taxes https://www.bloomberg.com/...
Along the Gulf of Fonseca, near a volcano, will live #BitcoinCity: a place with no income, property, payroll or municipal taxes, Salvadoran President @nayibbukele announced at #BitcoinWeek last night. 👇 https://www.coindesk.com/... https://twitter.com/...
🇸🇻 More on #Bitcoin City: “Likening his plan to cities founded by Alexander the Great, Bukele said Bitcoin City would be circular, w/ an airport, residential & commercial areas, & feature a central plaza designed to look like a bitcoin symbol from the air” https://www.reuters.com…
So glad to see something real on #Bitcoin instead of hype and jpgs. El Salvador Issuing $1B in Tokenized Bonds on the Liquid Network. Congrats @Blockstream & @nayibbukele @adam3us @Excellion @paoloardoino @KnutsonJesse https://blog.blockstream.com/ ...
#Bitcoin city in El Salvador 👏 It won't be a surprise to see massive crypto skill development in El Salvador. It'll benefit the country immensely. Kudos to @nayibbukele for taking such disruptive initiatives 🚀 https://twitter.com/...
President Bukele said the city would not levy any earnings, property, or cap gains taxes only a value added tax (VAT). “Invest here and make all the money you want,” Bukele said in English. “This is a fully ecological city...and is [powered] by a volcano.” https://www.reuters.com…
The question about El Salvador has been how Bukele will capitalize on the country's bitcoin holdings — the long-term play is starting to come into focus https://twitter.com/...
Basically the same model MicroStrategy uses: Borrow billions of USD via legacy bonds, buy $BTC. No reason to call this “Bitcoin bonds” besides marketing. https://twitter.com/...
. @Liquid_BTC has support for confidential transactions. That's what you would expect in the securities world and that's why is the perfect pick for @bitfinex securities. One of the most important features is that it reduces frontrunning by a good factor. https://blog.blockstream…
El Salvador to Issue $1B in Tokenized Bonds on the Liquid Network. Congrats to the @Blockstream team & @nayibbukele. @adam3us @Excellion. https://blog.blockstream.com/ ...
If you are a developing country would you rather issue $1 billion of bonds based on your renewable energy reserves or take out a $1 billion loan from the World Bank? https://twitter.com/...
.@nayibbukele announces they will sell a 10-year issue “volcano bond” carrying a 6.5% coupon to take up to $5 billion in #Bitcoin off the market within the next 60 days! https://www.coindesk.com/...