El Salvador took one more step closer to embrace cryptocurrency, especially bitcoin (BTC), based economy. The Central American country is now going to soon issue the bitcoin bonds after the bill gets passed.
Primarily the plan was first announced in November 2021 with the intention of issuing bitcoin bonds worth 1 billion USD over the layer 2 solution of Bitcoin, Blockstream’s Liquid Network.
According to the company’s initial plan, out of the accumulated money, about half of it that is 500 million USD will be allocated to purchase BTC, the other half proceeding will be used for infrastructure development including building of energy and bitcoin mining setup.
These bonds will profit the buyers with 6.5% yield and acquiring the country’s citizenship will become relatively easier for the investors.
As mentioned earlier the bill was announced in November 2021, while the bill was introduced after exactly one year following the announcement. Minister of Economy of El Salvador, Maria Lusia Hayem Brevé brought the bill in front of the legislative assembly.
The bill got approval from the assembly today, and El Salvador now can officially move towards bitcoin bonds.
The Bitcoin Office of El Salvador responded to the votes in favor of the bill and stated on Twitter that with the passing of landmark legislation intending to set a “legal framework for all digital assets,” the country amplified its “first-mover advantage.”
With the bill coming into existence, the “Volcano Bonds” can have their journey ahead a bit easier.
The country became the very first in the world to make the flagship cryptocurrency Bitcoin (BTC) legal tender in September 2021.
El Salvador’s partner prominent crypto trading platform Bitfinex stated, “With Bitcoin’s long-term performance as an investment asset, his detractors may have to do an about-face if his strategy is successful. Bitfinex will be a technology provider for the nation’s Volcano Token, which is expected to move forward now that the new regulatory framework is in place. We are watching this development with excitement, along with the rest of the Bitcoin community.”
Source: https://www.thecoinrepublic.com/2023/01/12/digital-securities-bill-seeking-bitcoin-bond-gets-approval-in-el-salvador/