Bitcoin City backed by BTC Bonds & volcano energy 🤯🌋; MoonPay’s mindblowing fundraise 🤯; Gemini’s bid on the metaverse 👀

Good Morning FinTech, 23 November

Good morning Everyone,

And happy Tuesday! I hope Monday wasn’t too harsh for you. If you’re still struggling with the new week, here’s a mix of 3 super interesting FinTech stories for today:

Bitcoin City backed by BTC Bonds & volcano energy 🤯🌋

The news 🗞 El Salvador🇸🇻, a 6.5M nation in Central America, is in the headlines again. This time, because it is delving further into Bitcoin and plans to issue sovereign Bitcoin bonds.

The Bitcoin Bond 📄 The country, which has already made Bitcoin a legal tender earlier this year, will issue $1 billion in tokenized U.S.-dollar denominated 10-year bonds to pay 6.5% through the Liquid Network.

Half of the funds will be converted to Bitcoin. The other half will help with infrastructure and Bitcoin mining, which will be powered by geothermal energy.

Following a 5-year-lockup period, the government plans to sell its bitcoins and pay investors additional dividends.

Money to be made 💸 According to Blockstream, which designs and develops software solutions, at the end of the bond’s 10th year, the annual percentage yield (APY) will come out to 146% because of the projected bitcoin appreciation.

The lockup period will take $500M in Bitcoin out of the market for 5 years, bolstering the tokens’ scarcity and value. Makes sense, right? 👀

Bitcoin City 😳 Additionally, El Salvador will build “Bitcoin City,” which will be free of income, property, and capital gains taxes. The only tax will be a 10% value-added tax for the construction of the city and various services. The city will be built near the Conchagua volcano. The idea is that the volcano will provide energy for mining.