El Salvador announced a great interest for a $1 billion bitcoin bond

The president of El Salvador, Nayib Bukele announced back in 2021, that the country has plans to issue the official government bitcoin bonds. This founds will be placed for development of the bitcoin mining industry in the country and plans for a ‘Bitcoin City’. This would be possible as El Salvador accepted bitcoin as a legal tender in its country, back on September 7th, 2021.

First issue is at a 10-year period and is valued at $1 billion, with a 6.5 percent interest rate. This will be backed by bitcoin, and half of the money invested in bonds will go into building a Bitcoin City infrastructure. The second half will be used to acquire a bitcoin found.

According to the reports from the crypto-industry companies that work with the government of El Salvador, more then a $ 500 million was pledged by possible donors. Back in January, the International Monetary Fund called for El Salvador to revoke a decision on declaring bitcoin a legal tender in the country, and urged El Salvador not to issue bitcoin backed bonds. International credit companies downgraded the credit rating of El Salvador to the CCC status, commenting on the bitcoin bond as a highly unstable and unpredictable product.