LETTER #30: This means it's working.
The Telegraph says Bitcoin could make the world a "bit harder to police."
El Salvador is about to launch its $1 billion “volcano bond” in the coming days.
The bond will have a 6% interest rate and the investors will get 50% of the increase in value of Bitcoin after the next five years.
It’s not for the first time that a country is issuing a bond to raise money. Most countries are dependent upon international institutions like the IMF for their loan needs. But El Salvador is using Bitcoin to raise money for them outside of the authority of the IMF. The “volcano bond” is getting a lot of attention worldwide.
The country’s finance minister has said that the bond will be over-subscribed. If the experiment goes successful, which I believe it will, other countries will learn that they don’t need to be a slave of the IMF. Earlier, the IMF could say NO to loaning out money to a country they don’t like.
As they did with Venezuela in 2020.
Countries can go El Salvador’s way and start issuing Bitcoin bonds for their domestic needs, and they won’t have to rely on the IMF.
“However, each new initiative like El Salvador’s bitcoin bond could chip away at the greenback’s supremacy a little, potentially making the world that bit harder to police and a touch more dangerous.” - the article noted.
Little do they know that this is what Bitcoin was designed for. Bitcoin makes it impossible to exclude anyone from the global financial system. Everyone can join the network anytime. Bitcoin doesn’t discriminate. It doesn’t recognize borders, color, gender, nationality, societal status, etc.
This is a feature, not a bug.
FINAL THOUGHT…..
Thank God for Bitcoin.