Published On: January 10, 2022 at 16:07 IST
El Salvador, the world’s first and only country to grant Bitcoin legal tender status, is making preparations to initiate 20 bills to establish a legal structure for its forthcoming Bitcoin bonds.
The government, led by pro-Bitcoin President Nayib Bukele, stated that the money made will be used to invest in infrastructure for Bitcoin City as well as purchase additional Bitcoin.
The Central American country intends to build the entire city based on the world’s most popular cryptocurrency, Bitcoin. It intends to issue a $1 billion bond, also known as Volcano Bonds, to fund the huge project along the Gulf of Fonseca close to a volcano.
Last week, El Salvador’s Finance Minister, Alejandro Zelaya, stated that the government will submit approximately 20 bills related to the bond to Congress for permission.
According to a local television station, the bills aim to protect financial markets and investment in securities in order to have a legal basis for releasing the bonds.
“This is to provide everyone who buys the Bitcoin bond with a legislative framework and legal certainty,” he added.
The administration of President Bukele hopes that Bitcoin will enhance the economic growth of the country and provide opportunities for investment. He expects Bitcoin’s value to remain on an upward trend in order for his proposals to succeed. Experts, too, predict that Bitcoin will stay positive at least for the rest of the year.