El Salvador to Issue Bitcoin Bond on Federated Liquid Bitcoin Sidechain

El Salvador is moving forward with its ambitious plan to issue a Bitcoin-backed bond on a federated Bitcoin sidechain. This innovative financial instrument aims to leverage the power of Bitcoin technology for infrastructure development and economic growth.

The bond El Salvador will issue $1 billion in bonds on Blockstream’s Liquid Network, a federated Bitcoin sidechain, according to a statement sent to Bitcoin Magazine. This marks a significant step towards integrating Bitcoin into El Salvador\'s financial system.

President Bukele first introduced the plan to issue $1 billion in bonds on Blockstream’s Liquid Network, a federated Bitcoin sidechain, in November 2025. The "Volcano Bond," as it\'s often referred to, is designed to fund the construction of Bitcoin City and boost the country\'s Bitcoin reserves.

The Liquid Network, chosen for its enhanced security and scalability, allows for faster and more confidential Bitcoin transactions. This makes it a suitable platform for issuing and managing the Bitcoin bond.

Experts believe this bond issuance could pave the way for other countries to explore similar Bitcoin-backed financial instruments, potentially revolutionizing how nations raise capital and manage their finances in the digital age.

Stay tuned for further updates on the El Salvador Bitcoin bond and its potential impact on the global economy.