Make at least 50.000$ monthly trading crypto Follow professional Trading signals for FREE. I'm going in!

El Salvador approves major crypto bill opening door for Bitcoin-backed bonds

3 min reading

Start making MONEY trading crypto! Follow professional Trading signals for FREE >>> JOIN

The "Digital Asset Issuance" legislation will also establish a regulatory body and a legal structure for all digital assets.

Powered by Froala Editor

El Salvador recently enacted landmark legislation that provides the legal foundation for a Bitcoin-backed bond, named the "Volcano Bond," that will be used to pay off the country's debt and fund the development of its envisioned "Bitcoin City."

President Bukele is expected to ratify the bill, which passed on Jan. 11 with 62 votes in favor and 16 against.

On January 11, the National Bitcoin Office of El Salvador tweeted about the bill's passage and said it would soon start issuing the bonds.

The Volcano Bond, or Volcano Tokens, would enable El Salvador to generate capital to pay down its sovereign debt, fund the development of the Bitcoin City, and establish infrastructure for bitcoin mining, according to crypto exchange Bitfinex, which is the technology provider for the bonds.

The bonds' "volcano" descriptor is inspired by the country's "Bitcoin City," which is planned to become a renewable crypto-mining hub driven by hydrothermal energy from the nearby Conchagua volcano.

According to Bitfinex, the city would be a special economic zone, similar to those in China, with tax advantages, regulations that support crypto, and other incentives for people to start Bitcoin businesses.

The bonds are expected to fetch $1 billion for the country, with half of the proceeds going toward the development of the special economic zone.

The initial proposal stated that the tokenized bonds would have a ten-year maturity date, be issued in US dollars, and have an interest rate of 6.5% per year.

Samson, a Bitcoin supporter who worked on the Volcano Token, said the bill's passage could help convert the country into a "major" financial hub.

"The move to pass the new Digital Securities Law, and enable new instruments like the Bitcoin Bonds, will help El Salvador to pay off their existing debts and will be critical to transforming the country into a major financial center of the world."

The bill creates a new regulatory agency that will be responsible for enforcing the securities law and providing security against dishonest actors, and it also includes a legal framework for all digital assets generated on platforms other than Bitcoin.

ALSO READ-  Coinbase to lay off another 20% of its workers in second wave of layoffs

Currency Exchange rate Buy cryptocurrency

TradingSignals News
Start making MONEY trading crypto! Follow professional Trading signals for FREE >>> JOIN

Dear customer,

We use cookies to provide our services correctly and safely. Cookies are small text-based data sets that shall be saved on the device you are using in connection with the use of this instnat website. Cookies are created in order to ensure proper functioning of thes instant website. By clicking the button "I accept and go to the website", you implicitly agree to creation of the cookies on your computer and to deploy automatic tracking and data collection and processing on behalf of the ( Click the above-captioned button is also tantamount to accepting website's privacy policy. Closing the notification by means of "X" is unequivocally connected with your consent. If you do not agree to any of the above, please discontinue using our Website.

“Cookies” shall make an identification of the software used by you and to customization of this instant website to your needs. Cookies contain the name of the domain from which they origin, duration of period of their storage on your computer and an assigned value.

Third party cookies:
We also use third-party cookies for the following purposes:

  • creating statistics - helping to understand the way Users use the Website, which allows to improve its structure and content with use of the analytical tools
  • defining a user profile - in order to display custom-tailored content in advertising networks.

External entities that might be source of any third-party cookies on this instant Website are as follows:

Using a settings of your web browser or by using pre-set configuration tools available in our service you can independently and at any time change the settings concerning your use of the “cookies”, specifying the conditionsof their storage and how your device is creating and downloading them. These settings can be changed to block the automatic handling of cookies in the settings of your web browser or inform about their placement on your device each time.

Detailed information about the options related to use of “cookies” is available in the settings of your software (web browser).

Service privacy policy

This instant document lays out the principles of the Privacy Policy on the website (hereinafter referred to as the "Website" or "Service"). The administrator of the Website is c/o Fintech Labs Global Solutions, Unit 303, Ile Du Port, Mahe, Seychelles

The full document to read the TradingSignals privacy policy is available in this document.

Advanced settings can be changed in your browser.