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El Salvador is preparing to introduce 20 bills to provide a legal framework for its upcoming Bitcoin bond issuance. The government of El Salvador explained that the funds raised will be used to build infrastructure for Bitcoin City and buy more Bitcoin.
El Salvador drafts a legal framework for Bitcoin bonds
Salvador’s Finance Minister Alejandro Zelaya (Alejandro Zelaya) said in an interview with a local television station on Tuesday that his government will submit about 20 bills on the country’s bitcoin bonds to Congress.
He explained that these bills will cover the financial market and securities investment and provide a legal basis for the issuance of Bitcoin bonds, adding that the legislation will create a framework to cover the corresponding market supervision and the issuance of encrypted asset securities. The Minister of Finance describes:
(This is) provide legal structure and legal certainty for everyone who buys Bitcoin bonds.
The Salvadoran government explained that half of the funds raised from Bitcoin bonds will be used to build infrastructure and the rest will be used to buy Bitcoin.
The President of El Salvador, Nayib Bukele, announced in November that he planned to release Bitcoin bonds It is worth 1 billion U.S. dollars and has a coupon rate of 6.5% to fund the construction of Bitcoin City. Bukele further stated that the city will be powered by a volcano and no taxes will be levied there except value added tax (VAT).
It is planned to issue bitcoin bonds this year.Booker predicted this week that it will be OversubscribedHe also pointed out that the construction of Bitcoin City is expected to begin this year.
El Salvador passed a Bitcoin law that allowed Bitcoin The legal tender tied with the U.S. dollar in September last year.Since then, the country Buy 1,391 bitcoins.
What do you think of El Salvador’s plan to submit 20 bills to provide the legal structure of Bitcoin bonds? Please let us know in the comments section below.
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