The El Salvadorian government has struck a deal with Blockstream and iFinex (the parent company of Bitfinex and Tether) to place a $ 1 billion bitcoin bond on the Liquid Network.
Half of the proceeds from the sale of bonds will be directed to the development of the infrastructure for mining the first cryptocurrency based on geothermal volcanic energy. The other 50% is for the purchase of digital gold for a government trust.
The tokenized share trading platform Bitfinex Securities will handle the issue. As part of the agreement, the latter will also help the El Salvadorian government develop a regulatory framework for blockchain-based digital financial instruments.
After the entry into force of the new legal regime, Bitfinex Securities will receive a license to operate in the country. The platform will become the exclusive partner of the El Salvadorian government, according to iFinex.
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Blockstream noted that the emergence of a regulatory framework "could pave the way" for other tokens issued on the Liquid Network, such as Blockstream Mining Note (BMN) or Exordium (EXO).
President Naib Bukele also announced the construction of a Bitcoin City along Fonseca Bay. To supply the city with energy, a geothermal power plant will be erected near the volcano located in the region. The same power is also going to be used for bitcoin mining.
According to Bukele, Bitcoin City will become a full-fledged metropolis with residential and business districts, restaurants, airport, seaport, and train stations. The city is recognized as a special economic zone, which does not levy taxes on income, property, capital gains, and wages.
El Salvador's state bitcoin fund acquired an additional 420 BTC in October. The structure now has 1,120 BTC on its balance sheet.