According to a Bloomberg report, Blockstream, a Canada-based firm, will support El Salvador in its attempt to adopt Bitcoin as a payment method. The company has proposed the government issue digital bonds supported by U.S. dollars. If approved, the project would function with a platform dubbed Blockstream Amp. This product will enable users to release and manage digital assets and tokenized securities on the Liquid Network through an API. Therefore, El Salvador could launch U.S. dollar bonds.
Blockstream’s Liquid Network is a sidechain-based settlement network that allows more confidential BTC transactions, according to the company. The firm’s website claims that the transfers with this product can be established within two minutes, and it’s available to all companies. As per the firm’s CSO Samson Mow, representatives from the company and El Salvador’s authorities met to discuss the proposal. The government expressed interest in the project, but it is yet to decide.
Mow pointed out that the tokenized securities based on the network have greater liquidity than regular securities. The sidechain functions every day with no restrictions, and it’s more cost-efficient for users, Mow explained. Besides those tokenized securities, users can also launch stablecoins. These digital assets backed by the app can be traded ‘freely within the network’ with more speed, privacy, and additional security trading options.
At the moment, Blockstream has issued tokenized securities to finance its mining operations; the firm has a product dubbed Blockstream Mining Note, according to the report, and will fund this activity by offering $100 million in notes. Mow says that tokenized securities can be a ‘huge step forward for the Latin American country. El Salvador recently approved its Bitcoin law to make BTC a legal tender.
Mow added: “To have it done by a sovereign nation would be the next level up. It would be groundbreaking if this were a path they were to pursue.”