1. El Salvador issues Bitcoin Bond

The Facts:

• President Nayib Bukele announced plans to issue a $1 bn Bitcoin Bond with a 10-year maturity.
• The bond will be offering a 6.5% coupon with the Bitcoins being locked up for 5 years.
• The current 10-year yield benchmark for El Salvador’s outstanding government bonds is around 13%.

Why it’s important:

• Adding half of the proceeds from the debt sale to Bitcoin is intended to attract more interest from investors at a lover yield than the conventional outstanding bonds.
• It will be interesting to see if the bitcoin-linked bond ends up being riskier than the outstanding government bonds.

2. Crypto Regulations in full motion

The Facts:

• Two proposals for digital asset regulations were adopted by the Council of the European Union on Wednesday.
• The intention is to create unified rules and provide a framework where innovation is promoted, while protecting investors.
• Meanwhile the Indian government is considering a bill on a potential CBDC and the simultaneous ban of certain cryptocurrencies.

Why it’s important:

• Clear regulations are essential to establish a productive environment for ventures to grow. Regulators have a lot of catching up to do.
• Clear rules that can be implemented by different nations can accelerate the process and lead to faster adoption and acceptance of the new technology.

3. Virtual Real-Estate

The Facts:

• Earlier this week a genesis land plot on Axie Infinity sold for 550 ETH.
• Genesis land plots are considered the rarest Terra of their kind. Terra represents tokenized plots of land in the world of Lunacia on Axie Infinity.
• The popular play-to-earn NFT game is benefiting from the rising popularity of virtual land, as the metaverse is expanding.

Why it’s important:

• With virtual galleries and museums as a way to display NFT collection in the virtual roam, virtual real-estate brings a new option for advertising and in game functions.
• The question of scarcity and value of the lot will be answered over time.

4. Turkish Lira continues to hit record lows

The Facts:

• A historic 15% crash following President Erdogan’s defense regarding recent rate cuts, has seen the Lira shed 42% against the Dollar this year.
• The accelerated currency depreciation and the soaring inflation nearing 20%, should apparently be countered by aggressive interest cuts of the central bank under the pressure of the Turkish President.
• The economical experiment is in full swing.

Why it’s important:

• The country is acting against common economical principles and has received backlash from internal and external opinion leaders.
• The economic and political situation is getting heated and thus it will be seen how long the experiment will last and what the long-term effects will bring for the Turkish people.

In other news

• Moonbeam wins second parachain auction on Polkadot. (via info)
• Adidas partners with Coinbase and purchased land in The Sandbox. (via cryptobriefing)

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