El Salvador is planning to issue next year $1bn in bonds backed by bitcoin, the latest effort by the economically stressed Central American nation to attract crypto capital.

The country this year became the first to adopt bitcoin as a national currency. It plans to sell $1bn in US dollar-denominated 10-year bonds with a coupon of 6.5%. Half of that money would be used to buy bitcoin to hold for five years and the rest would fund construction projects related to bitcoin.