El Salvador plans to use geothermal company La Geo for issuance of bitcoin bonds
The government of El Salvador plans to use state-owned geothermal company La Geo as vehicle for the planned issuance of bitcoin bonds.
With all the hype and discussions about bitcoin mining using geothermal energy, El Salvador with declaring bitcoin as legal tender clearly made the news also on this platform. Talks about a bitcoin city, bitcoin mining by geothermal plants of the country’s state owned geothermal power company LaGeo were shared here.
Then there were announcements of bitcoin bonds to be issued by the country. Now news report that the bitcoin bonds actually might not be issued by the government, yet by the state geothermal company LaGeo.
This follows an announcement by El Salvador’s treasury minister Alejandro Zelaya. He informed about the future for the issuance of the bitcoin bonds and the possibility of the issuance by LaGeo. With an expected delay, the plans now foresee the bonds go out to the market in May or July.
The government plans to go through LaGeo, which will have the responsibility of backing the instruments. So while now indirectly, the state would still responsible for the issuance of the bonds and would be giving warranties to bondholders, as debt of the State.