Per a Bloomberg report, Canada-based company Blockstream will aid El Salvador in its effort to implement its Bitcoin Law. The company has proposed the national government issue digital bonds backed by U.S. dollars.
If approved, the project would operate with a platform called 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 could issue U.S. dollar bonds.
Blockstream’s Liquid Network is a sidechain-based settlement network that enables “more confidential Bitcoin transactions”. The company’s website claims that the transfers with this product can be settled within two minutes and it’s open to all companies.
According to Blockstream Chief Strategy Officer Samson Mow, representatives from the company and El Salvador’s government met to discuss the proposal. The government expressed interest in the project but is yet to decide.
Mow highlighted those tokenized securities based on the Liquid Network have greater liquidity than traditional securities. This sidechain operates every day without restrictions and, Mow said, it’s more cost-efficient for the users.
Besides tokenized securities, users can issue stablecoins. These digital assets supported by Blockstream Amp can be traded “freely within the network” with more privacy, speed, and additional security trading features.
Bitcoin Law Receives Support From Multiple Initiatives
Currently, Blockstream has issued tokenized securities in order to finance its own mining operations. The company has a product called Blockstream Mining Note, the report claims. The company will further finance this activity by offering $100 million in notes.
Mow believes that tokenized securities can be a “huge step forward” for El Salvador. The country recently approved its Bitcoin law to grant BTC legal tender status in its territory. Mow added:
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 persue.
In addition, the company will provide El Salvador with kits to connect with Blockstream’s satellite stations. Citizens will be able to access the Bitcoin network without an internet connection.
Bitcoinist has been closely following the developments around the Bitcoin law in El Salvador. This legislation will go into effect in September 2021 and has put the country in the spotlight. From the visit of U.S. government officials, potential turbulence with the International Monetary Funds, and more.
For the citizens, the government expects crypto companies, such as Blockstream, to set up a shot in its territory. Thus, they can benefit from real economic growth and a more efficient way of receiving remittances.
The first crypto companies are already moving to El Salvador and with the BTC miner’s migration, the country could become a major hub for crypto-related business.
🙌🏻🔥 keep your eyes & ears open this next week! #ElSalvador will be the manufacturing hub of #Bitcoin ATMs to all of North and South America…
& then the world. 🌎 👀 #leybitcoin #VAMOS #cryptocurrency https://t.co/7b6Ngk90sk
— ChainBytes (@ChainBytes) July 2, 2021
At the time of writing, BTC trades at $34,680 with moderate gains in the daily chart. BTC must reclaim higher levels in the coming weeks, or the lack of conviction from the bulls could set off another revisit to the lows.
