The introduction of the digital-securities bill brings the country one step closer to issuing the first sovereign blockchain bond in history, which will be used to raise $1 billion for the development of a “Bitcoin city.”
El Salvador finally took a significant step toward the implementation of its grandiose “Bitcoin bonds” concept during the recent decline in the cryptocurrency market. Minister of the Economy Maria Luisa Hayem Brevé submitted a bill to confirm the government’s intention to generate $1 billion and use it to build a “Bitcoin city.”
A 33-page measure on digital securities, issued November 17, calls on legislators to provide a legislative framework for utilizing digital assets in El Salvador’s public issuances. The obligations of issuers and asset providers should also be taken into account, along with all other regulations for this process.
The administration of Nayib Bukele first issued “volcano bonds” or “Bitcoin bonds” in 2021. Initially, it was intended to issue $1 billion worth of such bonds and use the money raised to build a “Bitcoin city” at the foot of the Colchagua volcano.
The city would allegedly make the ideal cryptocurrency mining facility thanks to the volcano’s hydrothermal energy. Even so, half of the monies received would be put straight into Bitcoin.
The project has experienced multiple delays over the past 12 months. At one point, its launch phase was slated to begin in March, but it was later moved to September and then again for “security reasons.” Some reports claim that the legislation might be approved by lawmakers before Christmas.
Furthermore, last week, President Bukiele revealed through Twitter that starting this Friday, his administration would start buying one Bitcoin every day.
On September 7, 2021, El Salvador declared BTC to be legal tender and subsequently accumulated approximately 2,301 BTC worth roughly $103.9 million. The investment’s return was even put toward the construction of hospitals and schools during the bull market.