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:
— 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.
— 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.
👉 Also read – How to buy your first Bitcoins (BTC)
The best way to secure your cryptocurrencies 🔒
🔥 Up to $30 in Bitcoin offered by buying a Ledger
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.