More countries are getting ready to adopt cryptocurrency, who's next?  Reap Samson

More countries are getting ready to adopt cryptocurrency, who’s next? Reap Samson

El Salvador plans to release a Bitcoin-powered ‘Volcano Bond’. The country is already using Bitcoin as legal tender, and other countries in the global south are expected to follow suit.

That’s according to Samson Mow, CEO of JAN3. Mow, who helped design Volcano Bonds, spoke with host and producer David Lin for Kitco News.

“The Volcano Bond is structured like a traditional bond, except it is backed by Bitcoin,” Mow said. “So, the bid that El Salvador is running is a $1 billion bond hike for $500 million by buying Bitcoin… So, after a five-year period, or a five-year lockdown, they’re going to start selling some of the Bitcoin’ I bought quarter-by-quarter. And the Bitcoin valuation will be shared with bondholders. The other $500 million, and that’s why it’s called Volcano Bond, will be invested in geothermal energy infrastructure and Bitcoin mining. And the bond design is for a 6.5 percent coupon. And of course, eventually… you will get your manager back.”

The released Volcano Bond has not yet been released and is currently awaiting legal and regulatory approval. But El Salvador’s Finance Minister said it already has over $500 million in subscribers. According to Mow, it is mostly Bitcoin whales that have expressed interest.

In addition to El Salvador, the Central African Republic recently announced that it is adopting Bitcoin. Panama is expected to adopt Bitcoin soon. Mow says nationwide adoption of Bitcoin is “inevitable.”

However, there are those who criticize Bitcoin as legal tender, including the IMF and most of the “old financial system.”

“I think it subverts a lot of what they’re building,” Mow said. “The systems that are in place now… are consolidating the power of Western nations, and they certainly don’t like it when the global south starts to stand up and throw off the shackles.”

Mow thinks that as the United States struggles with its economy, developing countries will try to escape the US economic sphere of influence through assets like Bitcoin.

He’s not convinced that Bitcoin’s volatility makes it a problem for government treasuries.

“I think the concept of Bitcoin volatility is a very mainstream media… narrative,” Mow said. “If you look at Bitcoin over a four-year time horizon, if you look at the four-year moving average, it has never gone down. The problem is, people look at Bitcoin like it’s a stock… [But] Bitcoin’s value proposition is long-term.”

Mow believes that developing countries are adopting Bitcoin “out of necessity” and it will take some time for wealthy nations to catch up. He specifically chose Canada.

“I don’t think so… Canadians in general know we need Bitcoin,” he said. “But we actually do… We’ve sold all of our gold reserves over the last few decades.”

Mow commented on the Canadian government freezing financial transactions during the Freedom Convoy protests in Ottawa.

“This is a lesson to people, if you give up control of your money to the government then, well, it won’t be your money anymore. But in a way this is an ad for Bitcoin… And hopefully this ad will allow us to change the Canadian Government in a few years. And [then] “We will have a government that understands fiscal responsibility, understands money, and understands Bitcoin.”

Watch the video above to learn about Mow’s concerns about Central Bank Digital Currencies (CBDCs) and his long-term outlook for Bitcoin adoption.

Follow David Lin on Twitter: @davidlin_TV

Follow Kitco News on Twitter: @KitcoNewsNOW

Disclaimer: The views expressed in this article are those of the author and may not necessarily reflect those of the author. Kitco Metal A.S. The author has made every effort to ensure the accuracy of the information provided; but neither Kitco Metals Inc. nor can the author guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation for any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article assumes no liability for loss and/or damage resulting from the use of this publication.

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