Blockstream, a Bitcoin(BTC) infrastructure company based in Canada, suggested that it might issue a US dollar-denominated blockchain bond for El Salvador, as the country makes preparations to adopt the largest cryptocurrency as legal tender. The company is one of several crypto firms launching operations in El Salvador to expand its business while helping the government integrate cryptocurrencies into its financial system. Blockstream Pitches a Blockchain Bond to El Salvador’s Government According to Blockstream’s Chief Strategy Officer Samson Mow, the company has discussed its plans with Salvadoran lawmakers and received positive feedback from them. Although, a final decision on the matter is pending. As per the proposal, El Salvador would issue US dollar bonds through tokenized security on Blockstream Amp. The platform is used to manage and issue digital assets on Blockstream’s Liquid Network blockchain. Mow opines that a tokenized security would be more liquid than traditional securities because it trades on a crypto infrastructure that runs 24/7 and isn’t impacted by weekends or bank holidays. In Mow’s view, the use of token securities for the issuance of a sovereign bond will be a huge leap for the industry. He said, “To have it done by a sovereign nation would be the next level up. It would be groundbreaking if this were a path they were to pursue.” Blockstream Offers Tech Support for BTC Adoption Apart from the blockchain bond proposal, Blockstream will also provide El Salvador with satellite stations. The company has already shipped two satellite kits to the country, which will be connected to Blockstream’s Satellite Program. The stations will enable residents of El Salvador to gain access to the BTC network during internet outages and shutdowns. The company is expected to begin setting up dishes for the Satellite Program in the upcoming weeks. Blockstream is also exploring the potential of volcano mining in the country, which will leverage geothermal power for crypto mining. The news of Blockstream’s bond proposal comes at the heels of a recent warning to El Salvador from Fitch Ratings. The credit rating agency urged local regulators to create more transparency in crypto transactions and warned them that adopting Bitcoin as legal tender could increase the chances of violating the international anti-money laundering (AML) and terrorist financing standards.
The post Blockstream Might Issue Blockchain Bond for El Salvador appeared first on Cryptoknowmics-Crypto News and Media Platform.
from Live Crypto News – Cryptoknowmics-Crypto News and Media Platform
