El Salvador is gearing up to launch Bitcoin-backed bonds in the first quarter of 2024, contingent upon the success of President Nayib Bukele’s party in the upcoming election.
Vice President Felix Ulloa confirmed that Bitcoin would continue to be legal tender in the country during Bukele’s second term. This announcement follows the International Monetary Fund’s (IMF) request to reevaluate Bitcoin’s status as legal tender during ongoing negotiations for a substantial billion-dollar loan.
El Salvador’s commitment to Bitcoin remains unwavering, despite reservations from the IMF. As the presidential election approaches, where Bukele is expected to secure a decisive victory, Vice President Ulloa emphasized the nation’s dedication to Bitcoin adoption and legal tender status.
Ulloa mentioned that the recent announcement by the U.S. Securities and Exchange Commission (SEC) allowing U.S.-listed exchange-traded funds (ETFs) tracking Bitcoin has strengthened El Salvador’s resolve.
In a strategic move to further integrate Bitcoin into the country’s economy, Ulloa revealed plans to launch BTC-backed bonds in the first quarter of 2024 if Bukele and his New Ideas party secure victory in the upcoming election. Additionally, El Salvador’s ambitious projects, including the construction of Bitcoin City and the issuance of passports to investors contributing $1 million in Bitcoin, will proceed as planned.
El Salvador made history in September 2021 by becoming the first country to adopt Bitcoin as legal tender, a decision met with both praise and criticism. While negotiating a $1.3 billion loan with the IMF, a vocal critic, Ulloa expressed optimism that the remaining obstacles could be overcome, stating, “The majority of the package has already been agreed upon.”