El Salvador Eyes Issuance of Bitcoin Bonds Through Raft of Legislation
Brian Njuguna Jan 05, 2022 09:26
The issuance of a Bitcoin bond worth $1 billion is deemed as a stepping stone towards enhancing financial freedom and innovation in El Salvador.
El Salvador's administration plans to send approximately twenty bills to Congress to cover investment in securities and financial markets in order to provide a legal framework for the issuance of Bitcoin bonds.
Finance Minister Alejandro Zelaya disclosed this objective and said:
“This is to provide a legal structure and legal certainty to everyone who buys the bitcoin bond.”
He added that the bond, also called EBB1, would be pivotal in enhancing financial freedom and innovation in El Salvador.
Therefore, the bills aim to create a framework needed in the issuance of securities and coverage of corresponding market regulation in the cryptocurrency sector.
Part of the proposal entails granting residency to Bitcoin holders who relocate to the nation. Zelaya pointed out:
“There are Bitcoiners and friends of mine who want Salvadoran nationality and ask me how they can obtain it, but the country’s legislation does not have those benefits.”
When unveiling plans to build the world’s first Bitcoin City in November last year, El Salvador President Nayib Bukele disclosed that the bond would be valued at $1 billion with a 6.5% coupon.
The Bitcoin city to be funded through the bond intends to boost BTC awareness and adoption among citizens.
El Salvador has been walking head high since Bitcoin officially became legal tender in September last year.
As a result, the nation has adopted the “buying the dip” strategy because it has accumulated at least 1.390 BTC so far, according to the latest official data.
To show his confidence in the Bitcoin market, President Bukele disclosed his bullish forecasts that the price could hit $100,000 this year. He also stated that Bitcoin will "become a major electoral issue in U.S. elections this year."
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