Amid a crypto market downturn, El Salvador has finally taken a decisive step towards realizing its ambitious “Bitcoin Bonds” project. Economy Minister Maria Luisa Her Hayem Her Breve has introduced a bill confirming the government’s plan to raise $1 billion to invest in the construction of “Bitcoin City.”
33-page digital securities bill dated November 17 impulse Parliamentarians will create a legal framework using publicly issued digital assets by El Salvador. All the requirements of this procedure and the obligations of issuers and asset providers should also be considered.
“Volcano Bonds” or “Bitcoin Bonds” were introduced in 2021 by the Nayib Bukele government. The original plan was to issue about $1 billion in these bonds and allocate the proceeds to the construction of the base’s “Bitcoin City.” of the Colchagua volcano. Perhaps the hydrothermal energy of the volcano will make the city the perfect cryptocurrency mining facility. Half of the funds raised will continue to be invested directly in Bitcoin (BTC).
Related: Nayib Bukele Announces Bitcoin Prescription for El Salvador: 1 BTC per Day
The project has been repeatedly postponed over the last 12 months. At one point, its launch phase was scheduled for his early March, but was then pushed back to September and then postponed again for “security reasons.”
According to some sources, the bill will approved By lawmakers before Christmas. Paolo Ardoino, chief technology officer of cryptocurrency exchange Bitfinex, which is working with the government of El Salvador on a bond project, seems optimistic about the timing.
The Digital Securities Act allows El Salvador to become a financial center in Latin America.
https://t.co/1QBcrjxQCC— Paolo Ardoino (@paoloardoino) November 23, 2022
After making BTC legal tender on September 7, 2021, El Salvador has amassed over 2,301 BTC at around $103.9 million. During the bull market, profits from investments were also used to build schools and hospitals. However, as the country’s economy continues to struggle, 77.1% of the population want the government of El Salvador to stop “spending public funds on Bitcoin.”
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