El Salvador targets bitcoin proceeds to fund geothermal development

El Salvador targets bitcoin proceeds to fund geothermal development Berlin geothermal power plant of LaGeo, El Salvador (source: LaGeo)
Alexander Richter 14 May 2022

El Salvador plans to use funds raised as part of its bitcoin volcano bond issuance for geothermal development in the country.

El Salvador continues its push on bitcoin mining having introduced it as legal tender earlier this year. As part of the plans it is issuing volcano bonds, to build the planned bitcoin city.

A recent article by a crypto currency publication, shares details on those bitcoin plans. “El Salvador’s Bitcoin-backed Volcano Bond is revolutionary in that it’s the first tokenization of a sovereign bond.”, so the publication.

While rather complicated, the descriptions points to the goal to raise around $1 billion in funding, which the government plans to use in halves. With half of the money raised, the country targets the purchase of bitcoin and hold it for five years. Then they will be sold and half of the profits distributed to Volcano token holders.

Half of the profit though will be kept for funding infrastructure development, with plans to use it for funding geothermal development. El Salvador plans to grow that part that will be used to power, to improve the electricity grid in the region, and for mining and other operations.  They are using this initial raise of debt, in part, to create a Bitcoin treasury, and in part to improve the electricity grid.

Source: CryptoSlate