El Salvador has legally welcomed bitcoin bonds as proposed by President Nayib Bukele, the president of the Central American nation. The Volcanic Bonds, approved on Wednesday, would allow El Salvador to raise capital to pay off debts for the country while also contributing to Bukele’s ambitious special economic zone called “Bitcoin City” via Volcano Tokens. El Salvador is aiming to raise US$1 billion (around Rs.8,172 billion) through Volcano Bonds.
With a minimum investment of $100 (approx. Rs 8,170) ElSalvador Residents will be able to enter Volcano Bonds – this will contribute to the nation’s economy. Any increase in the value of Bitcoin is shared with the bondholders.
In total, El Salvador is aiming to raise US$500 million (around Rs.4,084 million) in funding Bitcoin City’s infrastructure and an equal amount to buy bitcoin for the treasury.
The Bitcoin Office, which is overseen by the Salvadoran authorities, released more details on the newly passed law Twitter.
4/ With the passage of this Digital Securities Act, El Salvador will offer unprecedented consumer protections from bad actors in the “crypto” space, while solidifying that we are open to anyone who wants to build the future with us on Bitcoin.
— The Bitcoin Office (@bitcoinofficesv) January 11, 2023
The domestic securities law, which has been circulating in the Salvadoran parliament for some time, received 62 votes from lawmakers.
The country has also created a legal framework to regulate cryptocurrencies other than Bitcoin.
BukeleThe crypto-friendly Salvadorian president welcomed the long-awaited decision, which is expected to make the masses more involved with crypto assets.
El Salvador’s Legislative Assembly just overwhelmingly passed the new Digital Securities Act!
Forward, always forward…
More information on this thread:point_down::skin-tone-3: https://t.co/8C21ZilyVP
— Nayib Bukele (@nayibbukele) January 11, 2023
El Salvador has chosen crypto exchange Bitfinex as the provider of these Volcano Bonds.
“This paves the way for more innovative financial solutions to meet the country’s needs, including the forthcoming Volcano token. This is a monumental achievement that will surely become part of history when El Salvador assumes sovereignty over its financial future. Bitfinex Role as technology provider for El Salvador’s Volcano token underscores our commitment to financial freedom and the adoption of Bitcoin, the exchange owned and operated by iFinex stated in a post.
Bukele aims to power the tax-free Bitcoin City with geothermal energy extracted from a regional volcano, which gives the “Volcano Tokens” their name.
Such is the support for BTC from El Salvador that her Miss Universe 2023 representative actually took the stage on Thursday, January 12 in a gold-colored Bitcoin-inspired ensemble.
