El Salvador Passes Change to Bitcoin Law, Sparking Bond Gain
- Sovereign notes rose as much as 2.7 cents on the dollar
- Bitcoin acceptance to become voluntary under approved change
The changes approved by congress make it voluntary for businesses to accept Bitcoin as a form of payment.
Photographer: Camilo Freedman/BloombergThis article is for subscribers only.
El Salvador’s dollar bonds rose the most in emerging markets Thursday after lawmakers approved changes to the nation’s Bitcoin law that were needed to secure an International Monetary Fund loan.
Government debt gained across the curve, with notes due in 2054 rising 2.7 cents on the dollar to 107 cents, according to indicative pricing data compiled by Bloomberg. The jump signaled investor optimism that the Central American country is close to cinching the $1.4 billion deal with the IMF.