The finance minister of El Salvador, Alejandro Zelaya, said that the government will be sending 20 bills to Congress to start the process of issuing Bitcoin Bonds in the country.
In an interview, on Tuesday, with local media, Zelaya said that the bills would function as the framework to the legal structure and legal certainty to everyone who buys the Bitcoin bond. He mentions that this is to create a structure to cover the corresponding market regulation and issuance of crypto asset security.
It has been stated by the government that $1 billion will be issued in bonds this year and that it would carry a token of 6.5% Accordingly, half of the bonds will be used to acquire Bitcoin (BTC) and the other half will be used to build infrastructure and in Bitcoin mining, El Salvador hopes to make profit from this. The bond is meant to encourage President Nayib Bukele’s dream of creating the world’s first ‘Bitcoin City’.
The Bitcoin City is said to be completely tax-free for the holders of Bitcoin in the east of the country which is powered by geothermal energy from the volcanoes around.
In addition to stating that the government was drafting appropriate legislation for the bonds to be released, finance minister Zelaya said,
“We are the first country to release a Bitcoin bond. And because we are the first country to do this, it needs to be regulated.”
Bitcoin (BTC), a legal token in El Salvador
In light of recent events, El Salvador became the world’s first country to make Bitcoin a legal tender. Subsequently, enterprises must now accept it if they have the technological means. This move has been criticized by the World Bank, IMF many global credit rating agencies. Although, the Bitcoin community has been moved by this act of support by the Central American country.
President Nayib Bukele, recently took to Twitter to announce that these bills are more than just a draft of the legislation of the bonds.
The country’s Bitcoin evangelist President has shown constant support through his announcements about projects related to cryptocurrency and Bitcoin Bonds, of which the most recent being ‘The Bitcoin City’. At the time of writing, Bitcoin (BTC) was priced at $46320.29 with a daily drop of 0.86%.
