El Salvador’s Minister of the Economy has submitted a bill to the country’s legislative assembly that would enable the issuance of digital assets, paving the way for the launch of its bitcoin-backed “volcano” bonds.
If passed, the bill would make El Salvador the first country in the world to issue bonds backed by a digital asset. The bonds would be issued by the country’s development bank, and would be used to finance social and infrastructure projects.
The bill, if passed, would make El Salvador the first country in the world to recognize bitcoin as legal tender. The move is a bold one, but could pay off big for the small Central American nation. With interest in bitcoin at an all-time high and the global economy in a state of flux, the time could be ripe for El Salvador to make a splash in the world of cryptocurrency.
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Digital securities law will enable El Salvador to be the financial center of central and south America,” wrote Paolo Ardoino, CTO of cryptocurrency exchange Bitfinex, on Twitter.
The Central American nation of El Salvador is set to grant a license to Bitfinex, a digital asset trading platform, that would allow the company to process and list the bond issuance in the country.
The move is a significant one for the cryptocurrency industry, as it would allow Bitfinex to operate as a financial institution in the country.
The government is pleased to announce a new initiative to raise funds for development projects and spur economic growth. The Citizenship by Investment Program will offer bonds yielding 6.5% per year to accredited investors. In addition, the government will share half of the additional gains generated from the bonds with investors as a Bitcoin dividend once the original $500 million has been raised. These dividends will be dispersed annually using Blockstream’s asset management platform. This program provides a unique opportunity for investors to obtain citizenship in a desirable Caribbean nation while earning a competitive return on their investment.
President Nayib Bukele of El Salvador has submitted a bill to Congress that would make his country the first in the world to adopt Bitcoin as legal tender.
The bill, which was hinted at earlier this year, kickstarts the first major milestone before the bonds can see the light of day. The next is getting it approved, which is expected to happen before Christmas, a source close to President Nayib Bukele told Bitcoin Magazine.
If approved, the bill would make Bitcoin legal tender alongside the US dollar in El Salvador. This would mean that businesses would be required to accept Bitcoin as payment for goods and services, and taxes could also be paid in the cryptocurrency.
The move would make El Salvador a trailblazer in the cryptocurrency space, and could lead to other countries following suit. It would also be a boost for Bitcoin, which has seen its price rise sharply this year.
