El Salvador Inches Closer to Issuing Bitcoin Volcano Bond
El Salvador appears to be a step closer to issuing a Bitcoin Bond as the administration of President Nayib Bukele has released a digital securities bond bill to lawmakers. The island nation also plans to legalize all crypto assets under the new law. Bitcoin Volcano Bond aims to attract capital and investors to El Salvador. The nation intends to issue $1 billion (roughly Rs. 8,118 crore) in bonds on the Liquid Network, which is an integrated sidechain of Bitcoin. The proceeds of the bonds will be distributed between a $500 million (approx. Rs. 4,060 crore) direct investment in BTC and a $500 million investment in local energy development and BTC mining infrastructure.
The copy is 33 pages long documents First reported by Bloomberg, it was released on Tuesday by a spokesperson for the president’s office. The bill calls for a digital assets commission and the Bitcoin Fund Management Agency to oversee the sale of crypto-related debt.
It is worth remembering that the issuance of the Bitcoin Bond it was delayed in August (by Fortune). At that time Paolo Ardoino, the CTO of the crypto trading platform Bitfinex, the official bond exchange, said that the offer will be delayed until the end of 2022.
Recent developments indicate that El Salvador is close to issuing its bonds, despite critics’ belief that it is unlikely to happen.
At launch, interested parties can invest as low as $100 (approx. Rs. 8,118). A Bitcoin Bond will be issued to raise $1 billion (roughly Rs. 8,118 crore) to fund the development of the nation’s tax-free Bitcoin City, which would use energy from a nearby volcano to mine crypto assets.
The $1 billion (approx. Rs. 8,118 crore) raised will be divided into two parts – $500 million (approx. Rs. 4,060 crore) to finance the infrastructure of Bitcoin City and a part to buy more Bitcoin, with the proceeds thanks to Asset of digital is distributed to the bondholders.
El Salvador currently has more than 2,300 BTC reserves, and the country recently vowed to buy 1 BTC every day amid a bear market.