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El Salvador is preparing to introduce 20 bills to provide a legal framework for its upcoming bitcoin bonds. The funds raised will be used to build infrastructure for Bitcoin City and buy more bitcoins, the Salvadoran government explained.
El Salvador drafts legal framework for Bitcoin bonds
El Salvador’s Finance Minister Alejandro Zelaya said in a local TV interview on Tuesday that his government would send around 20 bills to Congress regarding the country’s bitcoin bonds.
The bills will cover financial markets and securities investments to provide a legal basis for issuing bitcoin bonds, he explained, adding that the legislation will create a framework to cover the corresponding market regulation. and the issuance of securities in crypto assets. The Minister of Finance described:
(This is) to provide legal structure and legal certainty to anyone who buys the bitcoin bond.
The Salvadoran government explained that half of the funds raised through bitcoin bonds will be used to build infrastructure and the rest to buy bitcoins.
The President of El Salvador, Nayib Bukele, announced in November his intention to issue bitcoin bonds worth $ 1 billion with a coupon rate of 6.5% to finance the construction of Bitcoin City. The city will be powered by a volcano and there will be no taxes except for value added tax (VAT), Bukele added.
Bitcoin bond issuance is slated for this year. Bukele predicted this week that he will be oversubscribed. He also noted that construction of Bitcoin City is expected to begin this year.
El Salvador passed a bitcoin law, making BTC legal tender alongside the US dollar in September of last year. Since then, the country has bought 1,391 bitcoins.
What do you think of El Salvador’s plan to submit 20 invoices to provide a legal structure for bitcoin bonds? Let us know in the comments section below.
Kevin helms
Image credits: Shutterstock, Pixabay, Wiki Commons
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