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New Hampshire, USA, approves the issuance of $100 million in Bitcoin-backed municipal bonds.

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Source: DigitalToday Original Title: New Hampshire, USA, Approves Issuance of $100 Million Bitcoin-Backed Bonds Original Link: Bitcoin

The state of New Hampshire in the United States has approved a plan to issue $100 million in municipal bonds backed by Bitcoin.

This bond is issued with Bitcoin as collateral, rather than being backed by state governments or taxpayers, differing from traditional municipal bonds, and is structured with excess collateral provided by private enterprises. Designed by asset management firm Wave Digital Assets and bond specialist Rosemore Management, this bond is regarded as an experimental attempt to connect digital assets and traditional finance aimed at institutional investors.

The bond issuer must deposit Bitcoin equivalent to 160% of the bond value as collateral, and if the BTC price falls below 130%, automatic liquidation will protect investors.

Transaction fees will be used for the Bitcoin Economic Development Fund, a regional innovation and entrepreneurship program.

New Hampshire is pushing forward with a bill to relax regulations on cryptocurrency mining, following the allowance of local government investments in digital assets and precious metals in May.

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