Announced a year ago, government bonds correlated to Bitcoin (BTC) could soon see the light of day in El Salvador. As part of a bill to regulate cryptocurrencies, the Minister of Economy Maria Luisa Hayem explains in detail the operation of this future method of investment unique in the world.
El Salvador maintains its positions on Bitcoin (BTC)
Despite the fall in the price of Bitcoin (BTC) since its all-time high in November 2021, El Salvador Keeps Enthusiasm For World’s First Cryptocurrency.
Recently, Maria Luisa Hayem, the country’s Minister of Economy, introduced a digital assets bill to the legislature.
Composed of about thirty pages, this legislative project aims to implement a legal framework to facilitate the adoption of cryptocurrencies:
🚨#ULTIMAHORA🚨@nayibbukele presenta al congreso de el Salvador 🇸🇻 the PRIMERA LEY DE ACTIVOS DIGITALES⚖️
Con esto se ampliaría formally el marco legal, el cual ya NO regularía solo el uso de #btc en el país, sino de CUALQUIER criptoactivo. pic.twitter.com/CaHob92a9w
— Criptolawyer.eth🇦🇷⚽️ (@criptolawyer) November 22, 2022
“Nayib Bukele presents El Salvador’s first cryptocurrency law to Congress. This would officially expand the legal framework, which would not only regulate the use of Bitcoin in the country, but all cryptocurrencies.”
Moreover, if this law is passed, El Salvador to introduce government bonds backed by Bitcoin (BTC).
On a national scale, the sum expected by these bonds is significant: the objective of the Salvadoran government is to raise 1 billion dollars, which represents nearly 4% of the country’s GDP.
These bonds, dubbed ” Volcano Bonds will allow the country to increase its stock of bitcoins. In addition, the state wants to invest in bitcoin energy and mining using volcanic geothermal energy.
In exchange, investors will earn a return of 6.5% on the sum invested, and will receive dividends in bitcoins through the Blockstream platform.
Besides, cryptocurrency exchange Bitfinex has been chosen to process the El Salvador bond issue. According to Bitfinex CTO PAolo Ardoino:
Digital securities law will enable El Salvador to be the financial center of central and south America.
🇸🇻 https://t.co/1QBcrjxQCC— Paolo Ardoino 🍐 (@paoloardoino) November 23, 2022
“The Digital Assets Law will allow El Salvador to be the financial center of Central and South America. »
Recall that the government of El Salvador has acquired 2,392 bitcoins (BTC) since September 2021. Today, the loss in value of these assets amounts to – 63.5%.
Now all that’s left is to know if the country’s legislature wishes to extend its economic and political investment in the cryptocurrency industry.
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Sources: Bill
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Always enthusiastic about new technologies, I gradually moved closer to activities related to Web3 during the year 2021. Over time, I wanted to add my stone to the building. It was then that I became an editor, with the aim of explaining cryptocurrency-related topics to as many people as possible.
Timothy Bourbotte
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