Crypto world news: El Salvador has decided to issue Bitcoin bonds. However, the announcement of this issue has brought down the rate of existing ordinary bonds of El Salvador.
Needless to say, the instrument is the most amusing. Its conditions are quite interesting. “According to Samson Mou, director of Blockstream Corp. According to the strategy, which announced Bukele’s plans during the bitcoin conference, it is expected that 6.5% per annum will be paid on a 10-year tokenized bitcoin bond with an additional dividend of 50% of any profit due to bitcoins, as soon as El Salvador recoups the initial investment. According to him, these dividends will be paid either in dollars or in Tether stablecoins, which should become a kind of intermediary.”
How do you like it? Famously twisted.
For me, one question remains open: how will it be possible to calculate whether El Salvador has made a profit at the expense of bitcoins or not? It’s kind of cloudy, don’t you think? However, I believe that for cryptophanats all my fears will be groundless and boring.
Nevertheless, the very fact that the country is thinking about a bond crypto loan is very curious.
God be with him, with Salvador. But if the crypt becomes not only a means of payment or a measure of value, but also an instrument of accumulation and investment, then, you know, we will not just have a certain tool or product in front of us. It’s like a full-fledged money.
As any first-year student knows, modern economics identifies five functions of money:
- A measure of value. Money allows you to estimate the value of goods by setting prices.
- Means of circulation. Money plays the role of an intermediary in the exchange process.
- Means of payment. A money function that allows the time of payment not to coincide with the time of payment, that is, when goods are sold on credit.
- Means of accumulation and savings. The ability of money to participate in the process of formation, distribution, redistribution of national income, formation of savings of the population.
- The function of world money. It is manifested in the relationship between economic entities: states, legal entities and individuals located in different countries.”
If normal bitcoin bonds, both sovereign and corporate, appear in the world, then who will say that the cue ball is not money in all their classical senses?
Yes, there is still point 3 – a means of crediting for payment documents and transactions. I guess it won’t be a big problem anymore.
In short, an extremely interesting idea. If it works, and it will work not only for El Salvador, it will be a kind of financial revolution. Oh, how!