President Bukele’s goal is to raise billions of dollars in investment bonds.
A year ago, “volcanic” bonds were presented to the world, but their approval was delayed.
Exactly one year after the initiative was announced, today it was confirmed that El Salvador is taking the first legal steps to approve the long-awaited launch of Bitcoin bonds. Through the Minister of Economy, Maria Luisa Hayem Brevé, a draft law was presented to the national assembly, which will allow the issuance of “volcano” bonds.
This is how President Nayib Bukele gave the initiative seeks to attract international capital for the development of El Salvador as a pioneer in the introduction of Bitcoin. According to official documents Titled the “Digital Asset Release Act,” the state is proposing to create a legal framework for any transfer of digital assets or public offerings made within the national territory.
It also proposes to clarify the framework governing any entity that permits, supplies or operates cryptocurrencies such as bitcoin (BTC) in the country. In this way, the government is expected to be able to issue billions of dollars worth of bitcoin bonds that will be issued on the sidechain (or side chains) Liquid.
50% of these bonds will be used to purchase BTCand the other 50% will be invested in the development and construction of cryptocurrency mining energy infrastructure within the country.
The presentation of the legal document was celebrated by the bitcoin community, which is closely related to the adoption of the Central American country in the ecosystem. For example, Bitfinex CTO Paolo Ardonino, described this initiative as a step towards making El Salvador the “financial center of Central and South America”.
On the other hand, although President Bukele did not make any statements on his social media about the launch, he did dedicate himself share your twitter Announcement and impressions received during the legal launch of Volcán bonds.
Since then, the news has caused quite a stir these bonds were expected to appear on the market for a yearwhose launch has been delayed by the creation of this law, conflicts in Russia and Ukraine, and a bitcoin bear market, according to official statements.
It is also surprising that the country decided to launch the initiative now that the Bitcoin bear market has reached its peak and FTX failure This has affected trust in the ecosystem.