So, El Salvador just passed this Digital Assets Issuance Law after embracing bitcoin as legal tender. President Bukele's plan is to fund Bitcoin City with these volcano bonds. Sounds wild, right? They’re aiming for a tax-free, carbon-neutral city. Crazy times ahead.
Honestly, El Salvador is taking a huge gamble with bitcoin. I mean, Bukele seems super bullish but what if bitcoin tanks? They could be in serious trouble. I get the potential upside, but what’s their backup plan if things go south? Just saying, this feels risky for both the country and investors.
They only have about 3,000 bitcoins, and half were bought when prices were over 45k. A country with a small population like El Salvador can’t really drive mass bitcoin adoption. Sure, it’s an interesting project, but investing in bitcoin might be a safer bet for now.
The goal is to raise $1 billion through these volcano bonds. From what I read, it’s meant to cover sovereign debt, boost mining infrastructure, and build that Bitcoin City. Since they recognized bitcoin as legal tender back in 2021, they’ve been mining using geothermal energy. I think they’ll pull this off!