According to a Bloomberg report, Canada-based Blockstream will assist El Salvador in its effort to enforce the Bitcoin (BTC) law. The company proposed that the national government issue digital bonds backed by the US dollar.
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If the project is approved by El Salvador, it will work with Blockstream Amp. This product allows users to launch 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 private Bitcoin transactions.” The company’s website states that transfers with this product can be handled within two minutes and are open to all companies.
According to Samson Mow, Blockstream’s Chief Strategy Officer, representatives from the company and the government of El Salvador met to discuss the proposal. The government has expressed interest in the project, but has yet to make a decision.
Mow emphasized that tokenized securities based on Liquid Network have more liquidity than traditional 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 privacy, speed and added 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 product called Blockstream Mining Note. The company plans to further fund this activity by offering $100 million.
Mow believes tokenized securities could be a “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 an internet connection.
The first crypto companies are already moving to El Salvador. With the migration of Bitcoin miners, the country could become a real cryptocurrency hub.