Bukele Government Plans to Issue Government Bonds for Bitcoin Mining

The Nayib Bukele government plans to issue a Salvadoran bond to mine bitcoin, says a company official advising the executive on the matter, according to a note published by cryptocurrency website Coindesk.com.

Our proposed bond offering will be a critical component of Bitcoin development in El Salvador. It appears they can do so quickly, says Samson Mao, chief strategy officer at Blockstream, the company that advises El Salvador on issuing these bonds.

See: Economists Say El Salvador Is Becoming an Experiment for Bitcoin

The CEO says in an interview with Coindesk that this will be done through Blockstream Financial, a new institutional division that is structuring “some potential bond offerings” on the Liquid Network, a bitcoin scaling system powered by Blockstream.

Mozz notes that the talks are taking place at a “high level”, although they are still at an “early stage”.

According to the specialized website, the Bitcoin infrastructure company Blockstream explains that the bonds that will be launched by the Salvadoran government will be directed to finance Bitcoin mining using volcanic energy.

“Bukele wants El Salvador to become a bitcoin mining hub, potentially exploiting its rich geothermal resources, as well as a hub for blockchain software development and a haven for the crypto-rich,” the site memo reads.

Another agreement Bukele’s management has with that company, according to Coindesk, is for the country to be able to connect to its satellite network and keep it synchronized with the Bitcoin network in the event of a power outage or internet outage.

In this sense, the publication notes that the company promised on June 5 terms to connect El Salvador to the Blockstream satellite program.

Mow reveals to CoinDesk that “the company has sent two sets of satellite constellations to the country and that ‘early-stage’ but ‘high-level’ talks are going on about ‘volcano mining’ (or geothermal mining).”

In addition, Mao notes, “bonds can float to finance the state’s mining operations, which may benefit from the currently suspended geothermal energy.”

You might be interested: “Bitcoin was created to oppose everything that was created…it is for people without financial control,” says Economist Luis Membrinho.

Bukele and some of his officials, including the Finance Minister, Alejandro Zelaya, have come out to make statements in the relevant media and the President on the National Series about the Bitcoin law (approved on June 9) but none of them have clarified that these details appear in foreign media And on the lips of the companies negotiating with the government.