{"id":371117,"date":"2021-11-23T10:42:38","date_gmt":"2021-11-23T07:42:38","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/el-salvadors-dollar-debt-dives-on-bitcoin-bond-plans\/"},"modified":"2021-11-23T10:42:38","modified_gmt":"2021-11-23T07:42:38","slug":"el-salvadors-dollar-debt-dives-on-bitcoin-bond-plans","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/el-salvadors-dollar-debt-dives-on-bitcoin-bond-plans\/","title":{"rendered":"# El Salvador&#8217;s dollar debt dives on Bitcoin bond plans"},"content":{"rendered":"<p>&#8220;<strong># El Salvador&#8217;s dollar debt dives on Bitcoin bond plans <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTEvZmE1YWUxMGMtNzA2Mi00MThmLThmMWEtYzdjYjE2ODg3OGZiLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-128018ef>El Salvador\u2019s dollar-denominated bonds have fallen to an all-time low as the Central American nation\u2019s debt started trading in &#8220;distressed territory&#8221; this week.\u00a0<\/p>\n<p>El Salvador\u2019s USD bonds fell to 64.4 cents to the dollar on Monday, Nov. 22, following the weekend <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> that the Central American country would use Bitcoin (BTC) bonds to fund its Bitcoin City initiative. Dollar bonds have fallen steadily since April 2021 when they topped $1.10 according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-11-22\/bitcoin-bond-on-horizon-sends-el-salvador-s-dollar-debt-diving?sref=323RPL5z\">Bloomberg<\/a> data. <\/p>\n<p>A dollar-denominated bond is a bond issued outside of the United States by a foreign company or government, that is denominated in USD instead of their local currency.<\/p>\n<p>Monday\u2019s drop resulted in the country\u2019s debt becoming among the worst performers in global trading, Bloomberg reported. Investors are concerned that President Nayib Bukele has shut out the IMF from assisting the nation with development funds.<\/p>\n<p>Managing Director of investment banking company Stifel Nicolaus, Nathalie Marshik, commented that \u201cthis announcement cements the \u2018anything-but-the-IMF\u2019 path,\u201d before adding that bonds are falling \u201cas the market reassesses possible recovery value lower on the unpredictability of policies.\u201d<\/p>\n<p>The Bitcoin bond will pay 6.5% annual interest in addition to 50% of El Salvador\u2019s Bitcoin gains once its initial investment costs for its mining infrastructure have been recovered. Dividends will be paid in USD or Tether (USDT), according to Samson Mow, Blockstream\u2019s Chief Strategy Officer.<\/p>\n<p>Mow believes that the Bitcoin bond will be an alternative way for institutional investors to gain exposure to Bitcoin without having to hold Bitcoin themselves. It will also be a way for investors to help El Salvador develop more rapidly. Mow, who has been working with the El Salvador government on developing the Bitcoin bond, told <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/BloombergTV\/status\/1462941957198647301\">Bloomberg TV<\/a> on Nov. 23,<\/p>\n<blockquote><p>\u201cWe\u2019re trying to structure this in a way that people can present [the Bitcoin bond] to boards and directors as a normal bond because it is a normal bond. It just h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ens to have a large chunk of Bitcoin tied in.\u201d<\/p><\/blockquote>\n<p>In response to Mow\u2019s interview with Bloomberg, Podcaster and popular Bitcoin advocate Anthony Pompliano predicted that they will be \u201cridiculously oversubscribed.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">PREDICTION: The El Salvador bitcoin bond will be ridiculously oversubscribed  <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/2Kj0urm0SN\">pic.twitter.com\/2Kj0urm0SN<\/a><\/p>\n<p>\u2014 Pomp  (@APompliano) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/APompliano\/status\/1462952681446719488?ref_src=twsrc%5Etfw\">November 23, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>El Salvador has been in talks with the International Monetary Fund (IMF) for much of 2021 over a possible $1.3 billion loan. Those talks could be fading into obscurity as President Bukele has decided to fund more local initiatives, such as school building, with Bitcoin over USD.\u00a0<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>El Salvador to build 20 \u2018Bitcoin Schools\u2019 with surplus from Bitcoin Trust<\/em><\/strong><\/p>\n<p>The IMF issued a concluding <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.imf.org\/en\/News\/Articles\/2021\/11\/22\/mcs-el-salvador-staff-concluding-statement-of-the-2021-article-iv-mission\">statement<\/a> regarding El Salvador\u2019s funding request on Nov. 22. Although El Salvador\u2019s economy has rebounded quickly from the pandemic, fiscal deficits and high public debt services are creating bigger holes in the services the country can provide, it stated.\u00a0<\/p>\n<p>The report added that efforts to improve financial inclusion and raise growth are welcome, \u201cbut risks arising from Bitcoin as a legal tender, the new payments ecosystem, and trading in Bitcoin should be addressed.\u201d<\/p>\n<blockquote><p>\u201cBecause of those risks, Bitcoin should not be used as a legal tender. Staff recommends narrowing the scope of the Bitcoin law and urges strengthening the regulation and supervision of the new payment ecosystem.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/el-salvador-s-dollar-debt-dives-on-bitcoin-bond-plans\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# El Salvador&#8217;s dollar debt dives on Bitcoin bond plans &#8221; El Salvador\u2019s dollar-denominated bonds have fallen to an all-time low as the Central American nation\u2019s debt started trading in &#8220;distressed territory&#8221; this week.\u00a0 El Salvador\u2019s USD bonds fell to 64.4 cents to the dollar on Monday, Nov. 22, following the weekend news that the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":371118,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTEvZmE1YWUxMGMtNzA2Mi00MThmLThmMWEtYzdjYjE2ODg3OGZiLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,75606,74355,90059],"class_list":["post-371117","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-imf","tag-adoption","tag-el-salvador"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/371117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=371117"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/371117\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/371118"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=371117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=371117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=371117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}