El Salvador recently introduced tokenized investment opportunities based on Bitcoin infrastructure. The National Bitcoin Office launched a blockchain-based capital raise on the Liquid network, becoming the first country to do so. Liquid is a Bitcoin sidechain managed by Blockstream and a federation of 65 Bitcoin-centric companies globally. It offers faster, cheaper, and more private transactions than the main Bitcoin blockchain.
Investors in El Salvador now have the chance to invest in projects like the construction of the first hotel at El Salvador International Airport. The investment promises a 10% annual return over a five-year period, with a minimum investment of $1000. Investors will also receive free nights at the hotel they helped fund.
These tokenized offerings were made possible by El Salvador Bitcoin startup DitoBanx and the exchange platform Bitfinex. However, due to regulations, U.S. investors are not eligible to participate. El Salvador has been leading the way in Bitcoin adoption, being the first and only country to treat Bitcoin as legal tender alongside the U.S. dollar. The nation also runs a Bitcoin mining operation powered by geothermal energy from local volcanoes.
Overall, El Salvador’s embrace of Bitcoin extends beyond its legal status as a currency. The tokenized investment opportunities showcase the country’s commitment to utilizing blockchain technology for economic development.