El Salvador’s Bitcoin bond to launch in March, pushing BTC price up

El Salvador has announced the launch of its Bitcoin bond next month. Salvadorans are riding the wave of institutional Bitcoin adoption, fueling a bullish outlook among investors. 

Bitcoin price rally fueled by El Salvador’s bond issuance and institutional investment

El Salvador plans on issuing its first Bitcoin bond in March 2022. The Salvadoran Finance Minister, Alejandro Zelaya told a local news show that the government plans to issue the Bitcoin bond between March 15 and March 20. 

Zelaya was quoted as saying:

If we really want to build this country, we have to invest in it like this.

The Salvadoran Bitcoin Bond will pay investors 6.5% per annum. $500 million raised from the bond issuance will be used for Bitcoin mining and developing renewable energy from volcanoes, another $500 million for buying more Bitcoin. 

El Salvador’s government plans to issue $1 billion for the first bond and expects it to be oversubscribed by an additional $500 million. The minimum purchase is $100, and investors can directly buy without involving a broker. 

The Bitcoin bond would be issued on Blockstream’s Liquid Network sidechain. 

Salvador’s move to launch a Bitcoin bond is timed in accordance with the rising corporate adoption of the asset. Firms are keen on adding Bitcoin to their balance sheet; recent Wells Fargo and JP Morgan reports have affirmed a bullish outlook on BTC price. 

Analysts at FSInsights recently evaluated the Bitcoin price trend and set a target of $222,000 for the end of 2022. 

FXStreet analysts believe that Bitcoin price could stumble on track to $50,000.