According to the country’s finance minister, Alejandro Zelaya, El Salvador wants to issue its first bitcoin bond in March 2022.

Alejandro Zelaya, speaking on a local television program in El Salvador, said the administration expects to have the bond ready for issuance between March 15 and March 20. He remarked that if they truly want to improve the country, they must do so in this manner.

As previously stated during the Latin American Bitcoin and Blockchain Conference on November 20, Zelaya acknowledged that the government is still preparing to issue a $1 billion bond for the first time. During the event, he also stated that the bond is expected to be oversubscribed by at least $500 million.

Because this new sort of bond has a $100 minimum purchase requirement and does not require the use of a stockbroker, Zelaya believes that more individuals will be able to buy it than a standard bond. Blockstream’s Liquid Network sidechain will be used to issue the bond. The bitcoin bonds, according to Zelaya, “shall comply with all financial market standards,” including know-your-customer (KYC) and due diligence requirements.

El Salvador’s president, Nayib Bukele, shared the stage with Blockstream chief strategy officer Samson Mow at the Latin American Bitcoin and Blockchain Conference on November 20th, when the Bitcoin bond was first unveiled. Bukele also revealed plans to construct a new, crypto-friendly town named Bitcoin City, while Mow outlined the bond’s specifications.

While crypto fans are thrilled about the bonds and will likely want to acquire them to leave their mark on history, other financial professionals and agencies, including the International Monetary Fund (IMF), have raised concerns about whether they are a good investment and will attract enough investors.

The International Monetary Fund (IMF), which is said to be in talks with El Salvador for a $1.3 billion loan, recently stated that some of its directors are concerned about the hazards of issuing Bitcoin-backed bonds. In the meantime, according to Reuters, the country has a $800 million bond due in January 2023.

According to that November presentation, El Salvador’s first bitcoin bond will have a coupon of 6.5 percent and will maturity in 2032. During the conversation, Zelaya also referenced a voucher. The country intends to spend half of the issue to purchase bitcoin, with the remaining funds going toward energy infrastructure and mining.

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