Bitcoin Bonds will soon be introduced in El Salvador but before their launch, the Government is going through massive law reforms for the purpose and has proposed that at least 20 bills to the effect will be prepared. The revenue collected from the Bitcoin Bonds will be utilized towards developing ‘Bitcoin City’.
El Salvadoran Parliament will soon be receiving at least 20 bills aimed towards developing legal infrastructure for the ‘Bitcoin Bonds’. It was informed by the country’s Minister for Finance, Alejandro Zelaya, that massive law reforms for launching ‘Bitcoin Bonds’ are the need of the hour.
He informed that the 20 bills will provide a comprehensive legal framework for the desired ‘Bitcoin Bonds’. For instance, the bills will cover aspects of financial markets as well as investment in securities for laying down the foundation for the upcoming bonds. Anyone who will be buying Bitcoin Bonds will be legally indemnified that his or her investment is secured under the law.
The Minister further revealed that at least half of the funds collected from the sale of Bitcoin Funds will be dedicated to the upcoming project. The project he told would be of the desired “Bitcoin City”, which the country’s President had been speaking of for a very long time.
The offering of Bitcoin Bonds was also the idea given by the country’s President, Nayib Bukele. President Bukele had said in November 2021 that Bitcoin Bonds are necessary for funding the Bitcoin City. At that time he proposed that approximately US$ 1 Billion worth of bonds be issued with an interest rate of 6.5%. He further suggested at then that the proposed city will be energized through electricity produced from the volcano sites. In addition, the city will be free from any kind of taxes except for the VAT, said President Bukele.
On the very first day of 2022, President Bukele posted a tweet in which he told about the future initiatives relating to Bitcoin. Two of these initiatives were the issuance of Bitcoin Bonds and the commencement of work towards developing Bitcoin City. It seems that President Bukele is now ready to take on both initiatives at the same time.