certify
Home arrow Article arrow Article Detail

Legislative Assembly of El Salvador passes a bill on Bitcoin-backed bonds

Profile Image

Indrani bose Follow

INDIA

Jan, 17 2023

Jan, 17 2023

likes | comments 0

Article Image

Recently, the Legislative Assembly of El Salvador passed a bill on Bitcoin-backed bonds. It will serve as a base for the issuance of Volcano Bond, which is a bitcoin-backed bond. It can also be used to pay down sovereign debt and provide funds to build the proposed "Bitcoin City." 

 

A Jan. 11 tweet from El Salvador's National Bitcoin Office announced that the bill had passed and the bonds would soon be issued. The bill was passed with 62 votes in favor and 16 votes against it, and it will become law after President ratifies it.  No date has been announced for the issue of the volcano bonds.


In addition to creating a regulatory body, the "Digital Asset Issuance" legislation will also establish a legal framework for all digital assets. El Salvador's Legislative Assembly enacted the Digital Assets Issuance Law, which establishes a framework for the country to issue crypto-related debt instruments. The authorized law serves as the foundation for long-awaited volcanic bonds. El Salvador has taken another step toward integrating blockchain technology into the state's financial processes.


The document also establishes the bitcoin funds managing agency, which is an autonomous institution that will handle the funds obtained by the state through the issuing of cryptocurrency-based bonds and will have direct contact with the El Salvadoran Treasury.


The Central American nation announced in November 2021 that it planned to raise $1 billion through bitcoin-backed bonds. The approval of this law came in November. The tax-free and carbon-neutral metropolis would be developed using $1 billion and would be powered by geothermal energy.


About Volcano bonds 

Volcano bonds which is a set of debt instruments that will be used to partially fund the development of the country's Bitcoin City. The term Volcano Bonds is drawn from El Salvador's Bitcoin City, which is planned to become a renewable crypto-mining hub powered by hydrothermal energy from the country's active volcanoes.


likes | comments 0

Profile Image

Indrani bose

CBW - External Analyst

INDIA

Comments
Data Centre Construction - World First artificial intelligence AI-Tech Utility Token
banner
Article
DeFi Protocol SeaSwapSui Steals $32k From Investors

It was discovered by CeriK Alert that the decentralized exchange platform SeaSwap has scammed its users out of around $32,000 worth of SUI tokens;

Disclaimer: The information is for informational purposes only.​ This advertisement does not constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. None of the information and/or content available through this advertisement is intended as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any company, financial product, security or commodity. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable or result in any investment or other losses. In Making the investment decision, investors must rely on their own examination of the issuer and the terms of the offerings, including the merits and risks involved. Investments are speculative, illiquid, and involve a high degree of risk , including the possible loss of investment.