El Salvadorean President Nayib Bukele’s ambitious Bitcoin Law has met staunch opposition. However, Bitcoin bull Max Keiser believes the grand experiment could help El Salvador become the equivalent of a city of London in Central America.
El Salvador and Bitcoin
In conversation with Diario El Salvador, Keiser said El Salvador could become a Bitcoin ‘hub’ for Central and Latin America. He noted that London was one of the three largest financial centers in the world before Brexit and made a large part of the European bonds, executing big deals in the Forex market. Keiser is hopeful that El Salvador would become a ‘hub’ and a financial center in Latin America with Bitcoin in the picture.
“The interest of Salvadoran citizens in bitcoin has grown because Salvadorans have their own bank account on their phones. People who were not banked, which was 70% or more, now with Chivo wallet and other wallets have the opportunity to have financial services.”
While reiterating his previous statement, Keiser stated that El Salvador has the potential to become “Bitcoin’s Wall Street,” considering Bitcoin as a legal tender and with stock market laws in this regard. He also added that it could attract huge amounts of global capital into the country.
High Hopes For Bitcoin Bonds
Keiser believes that Volcano Bonds will be the first project to launch this year. Claiming its as a “huge innovation” in finance, he revealed working with Blockstream CSO Samson Mow for developing the idea.
The bonds are to be launched on Blockstream’s Liquid, a bitcoin-based service, and have a 6.5% coupon. As a matter of fact, it was Keiser who suggested Volcano Bonds’ backed by future Bitcoin mining revenues to dodge the International Monetary Fund (IMF) loans last year.
Earlier this week, Finance Minister Alejandro Zelaya revealed that the country’s initial $1 billion BTC bond issue will take place between March 15 and 20.
During the initial announcement of the Bitcoin Bonds in November, Bukele asserted that half of the $1 billion raised would be deployed to help build the required energy and BTC mining infrastructure. The remaining will be used to rake in more bitcoin for the country’s holdings.
CryptoPotato earlier reported that the credit rating agency Fitch Ratings downgraded El Salvador’s long-term foreign currency Issuer Default Rating (IDR) to ‘CCC’ from ‘B-‘ citing Bitcoin adoption risks.