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El Salvador is drafting 20 bills to establish a legal framework for Bitcoin bonds

elsalvador-bitcoin

To establish a legal foundation for issuing the bond, the legislation proposes to encompass financial markets and securities investing.

El Salvador is preparing to introduce 20 bills to provide a legal framework for its planned Bitcoin bonds. El Salvador was the first and only government in the world to grant Bitcoin legal money status. The cash will be used to create infrastructure for Bitcoin City and buy additional Bitcoin, according to the government, which is led by pro-Bitcoin President Nayib Bukele. The Central American nation intends to construct an entire metropolis based on the world’s most popular cryptocurrency, Bitcoin. It plans to issue a $1 billion bond, also known as the Volcano Bonds, to fund the mammoth project, which will be built along the Gulf of Fonseca near a volcano.

Last week, El Salvador’s Finance Minister, Alejandro Zelaya, stated that the administration will bring roughly 20 bills to Congress for approval connected to the bond. According to him, the bills will include financial markets and securities investments in order to create a legal foundation for issuing the bonds.“[This is] to provide a legal structure and legal certainty to everyone who buys the Bitcoin bond,” he added.

elsalvador-bitcoin

The government of President Bukele expects that Bitcoin will help the country’s economy flourish and provide new investment opportunities. For the success of his endeavours, he is banking on Bitcoin’s price to remain on an upward trend. Experts have predicted that Bitcoin will remain favourable at least for the rest of the year. They have, however, cautioned against the crypto industry’s normal severe volatility.

Bitcoin bonds provide a safer alternative to direct investment for investors who want to engage in cryptocurrency but don’t want to be exposed to daily price changes. President Bukele previously projected that the Bitcoin bonds would be oversubscribed if they were released this year. He also stated that development on Bitcoin City will begin this year.