El Salvador to go ahead with bitcoin-backed bonds, vice president says
El Salvador's Vice President Felix Ulloa confirmed on Wednesday that Bitcoin will remain legal tender in the country during President Naib Bukele's second term.
The announcement follows the IMF's request to review cryptocurrency as legal tender in its ongoing negotiations to secure a massive multi-billion dollar loan.
El Salvador's commitment to Bitcoin is unwavering
As El Salvador prepares for presidential elections, with Bukele expected to win a decisive victory, the vice president has doubled down on the country's adoption of Bitcoin.
Ulloa, who is currently on leave to run for re-election against Bukele, reiterated the Central American nation's commitment to adopting cryptocurrency as legal tender. Despite the IMF, the Salvadoran government has no intention of reversing its decision.
Ulloa added that the US Securities and Exchange Commission (SEC) recently strengthened its commitment to allow US-listed exchange-traded funds (ETFs) to track bitcoin.
Ulloa said in an interview with Reuters, “The law is not only expected, but now, it has great credibility around the world.”
Bitcoin-backed bonds on the horizon
In a strategic move to further integrate bitcoin into the country's economic landscape, Bukele and his New Ideas Party announced that if they secure victory in the upcoming elections, El Salvador will push ahead with plans to launch BTC-backed bonds in the first quarter of 2024. .
Ulloa also confirmed that the ambitious plan to build Bitcoin City, a tax-free crypto haven in the eastern part of the country, and to issue passports to investors worth $1 million in Bitcoin, will continue as planned.
El Salvador made history in September 2021 by becoming the first country to accept bitcoin as legal tender, prompting both praise and criticism. The government is negotiating a loan of 1.3 billion dollars from the IMF, which has drawn heavy criticism.
However, Ulloa is hopeful that the obstacles can be overcome. “Most of the package deals have already been agreed,” he said.
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