El Salvador recently embarked on a significant endeavor into the realm of tokenization, by introducing national investment opportunities founded on Bitcoin infrastructure. The nation’s National Bitcoin Office initiated a blockchain-based fundraising campaign on the Liquid network. Managed by Blockstream and a consortium of 65 Bitcoin-oriented companies worldwide, Liquid serves as a Bitcoin sidechain. This blockchain operates with BTC as its primary asset, enabling quicker, more cost-effective, and confidential transactions compared to the main Bitcoin blockchain.
The Versatility of Liquid Blockchain
Besides Bitcoin, Liquid is capable of supporting the creation of tokens that embody various assets, including stablecoins like Tether (USDT), meme coins, and real-world assets and securities. One of the notable token offers from El Salvador involves investing in the development of the first hotel at El Salvador International Airport. This investment opportunity promises a 10% annual return over a five-year period, with a minimum investment threshold of $1000. According to the Inverlag Hotels website, the infrastructure of the hotel will feature 80 rooms, five commercial spaces measuring 99 square meters each, along with amenities like a swimming pool, restaurants, a gym, gardens, and multipurpose rooms.
“The infrastructure will include 80 rooms, five commercial spaces each measuring 99 square meters, a swimming pool, and various amenities such as restaurants, a gym, gardens, multipurpose rooms, among others,”
Investors who participate in this venture will also receive complimentary stays at the hotel they are contributing to build. Notably, individuals investing $1 million will enjoy year-round free accommodation throughout the five-year duration of the bond.
The Accessibility of Tokenized Investments
Roberto Laguardia, the CEO of Inverlag, emphasized the inclusive nature of these investment opportunities, stating, “These opportunities are typically unavailable to the general public. They are usually reserved for large-scale or institutional investors and private equity firms… However, with a minimum investment of $1000, individuals can access a 10% interest rate, paid bi-annually, over a five-year period.”
“These opportunities are typically unavailable to the general public. They are usually reserved for large-scale or institutional investors and private equity firms… However, with a minimum investment of $1000, individuals can access a 10% interest rate, paid bi-annually, over a five-year period.”
The tokenized offering was facilitated by the El Salvador Bitcoin startup DitoBanx, utilizing the Bitfinex exchange platform for token issuance. It’s important to note that due to regulatory constraints, this investment avenue is not open to U.S. investors.
El Salvador has emerged as a trailblazer by becoming the first and only nation to recognize Bitcoin as legal tender alongside the U.S. dollar. The country not only actively invests in BTC but also operates a Bitcoin mining initiative fueled by geothermal energy sourced from local volcanoes. The government’s endorsement of Bitcoin transcends its legal tender status, as evidenced by these novel tokenized investment initiatives.
This week, the Bitcoin Office of El Salvador announced that the country has successfully mined 474 BTC since the inception of these operations in 2021 and currently holds a total of 5,750 BTC (equivalent to $378 million).
