Tunisia and Afghanistan are willing to become the first countries in the world to issue a sovereign Bitcoin bond. These two country’s governors were speaking at the annual Spring Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund which happened in Washington between April 8 and 14.
Help access needed investments
The governor of the central bank of Afghanistan, Khalil Sediq told that they were seriously considering issuing a sovereign crypto bond that uses blockchain technology. That would be as an instrument to raise around $5.8 billion which would help the private sector. Afghanistan’s mining, energy and agriculture sectors are “critical”, says Khalil Sediq. Also, he suggested that Bitcoin could be coupled with a form of metals future like Lithium. He notes that the value of Afghanistan’s mineral reserves estimates around more than $3 trillion. Also, Afghanistan now has become the worlds largest Lithium miner.
One of the reasons why Afghanistan is considering a Bitcoin bond is because the country is facing severe restrictions on non-concessionary borrowing, says Khalil. This means that a crypto issuance could offer a way to access international markets via blockchain.
Tunisia has a working group studying the issuance of a Bitcoin bond
Marouane El Abassi, the governor of Banque Centrale de Tunisie, also was speaking at the Spring Meetings conference. He revealed that Tunisia is in the works of issuing a sovereign Bitcoin bond.
Moreover, Tunisia was one of the first countries in the world which developed its own digital currency the e-Dinar. Also, they already had a working digital payments network through a Poste Tunisienne system which DigitUS Tech developed.
Additionally, Marouane El Abassi commented that Bitcoin and blockchain technology can offer central banks a very efficient tool. It could help to fight money-laundering, manage remittances, fight cross-border terrorism and limit grey economies.
Christine Lagarde, the managing director of International Monetary Fund, said that she thinks issuing Bonds using blockchain is possible, however, it needs testing, using a closed and supervised “sandbox” approach.