El Salvador is preparing for Bitcoin bonds – government will present 20 bills to lawmakers for regulating cryptocurrency
El Salvadorgovernment is working on legislation to issue $1 billion Bitcoinbonds.
- In an interview, El Salvador’s Finance Minister said the government wants to provide a “legal structure” for those interested in bitcoin bonds.
- In September last year, El Salvador became the first country to accept Bitcoin as legal tender.
AdvertisementAfter creating history by becoming the first nation to adopt Bitcoin as legal tender, El Salvador is now working on legislation that will create a framework to issue $1 billion Bitcoin bonds. In an interview with the local media, El Salvador’s Finance Minister Alejandro Zelaya said that the government has prepared 20 bills that will establish the legal and financial framework for bitcoin bonds. However, there has been no indication of the timeline for this legislation to be submitted further to lawmakers.
[The Bitcoin Bonds] need a regulation, a legal framework because we don’t have a law to issue crypto backed securities, we don’t have a law to oversee exchanges.
First proposed in November 2021, the government is looking to issue Bitcoin bonds worth $1 billion to investors – half of the funds raised would be used to buy Bitcoin, and the other half would be spent on infrastructure. This is expected to fund their ‘
The bonds would have a term of ten years and carry an annual interest of 6.5 per cent to attract investors. The Bitcoin bonds are expected to be issued through Blockstream, as tokenised bonds on the Liquid network.
Bukele doubles down on Bitcoin!
On Jan 2, El Salvador’s crypto-loving President
2022 predictions on #Bitcoin:•Will reach $100k•2 more countries will adopt it as legal tender•Will become a maj… https://t.co/hSIqs47Dxf— Nayib Bukele (@nayibbukele) 1641089985000
After making Bitcoin a legal tender in September 2021, President Nayib Bukele has been doubling down on the world’s oldest cryptocurrency. He announced the launch of Bitcoin bonds, also known as Volcano bonds in November last year. El Salvador is also launching the world's first "Bitcoin City," funded by cryptocurrency – to be built next to Conchagua volcano in the southeastern part of the country.
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