According to Bloomberg news, Canada-based Blockstream will help El Salvador in its effort to implement the Bitcoin (BTC) law. The company proposed that the national government issue digital bonds backed by the US dollar.
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The project will work with Blockstream Amp if approved by El Salvador. This artifact allows users to initiate and manage digital assets and tokenized securities on the Liquid Network via an API. Thus, El Salvador can issue US dollar bonds.
Blockstream’s Liquid Network is a sidechain-based settlement network that provides “more implied Bitcoin transactions.” The company’s website states that transfers with this work can be handled in two minutes and are open to all companies.
According to Blockstream’s Chief Strategy Officer Samson Mow, representatives from the company and the El Salvador government came to discuss the proposal. The government has expressed interest in the project, but has not decided now.
Mow emphasized that tokenized securities based on the Liquid Network have more liquidity than conventional securities. Mow also underlines that this is more cost-effective for users.
Besides tokenized securities, users can issue stablecoins. Powered by Blockstream Amp, these digital assets can be swapped “freely within the network” with greater closure, speed, and additional security trading features.
El Salvador Could Become a Cryptocurrency Hub
Currently, Blockstream issues tokenized securities to finance its own mining operations. According to the news, the company has a work called the Blockstream Mining Note. The company plans to further fund this activity by offering $100 million.
Mow believes tokenized securities could be a “true big step forward” for El Salvador:
The company will also provide kits for connecting to Blockstream’s satellite stations in El Salvador. Citizens of the country will be able to access the Bitcoin network without internet contact.
The first crypto companies are already moving to El Salvador. With the migration of Bitcoin miners, the country could become a real cryptocurrency hub.