• El Salvador’s congress has passed a digital securities law that would allow the nation to issue Bitcoin-backed bonds, also known as Volcano Bonds.
• The National Bitcoin Office (ONBTC) of El Salvador announced that it would begin issuing the bonds soon.
• President Nayib Bukele plans to fund the development of a world’s first “Bitcoin City” by raising $500 million through Bitcoin-backed bonds.
El Salvador has just become the first country in the world to approve a law that will allow it to issue Bitcoin denominated bonds, also known as Volcano Bonds. The Legislative Assembly of El Salvador passed the bill on January 11th with 62 votes in favor and 16 against. This law is set to become official after it is ratified by President Bukele.
The National Bitcoin Office (ONBTC) of El Salvador announced that it would soon begin issuing the bonds, which is an exciting prospect for the nation and its citizens. The ONBTC is a ‘specialized administrative unit’ tasked with coordinating and consulting all Bitcoin-related projects in the country.
President Nayib Bukele initially announced his plans for the world’s first ‘Bitcoin City’ in November 2021 and intends to fund the development of the city by raising $500 million through the issuance of Bitcoin-backed bonds. The city will be located in the southeastern district of La Unión and will have a circular shape to resemble a giant coin. It is proposed to contain residential sections, commercial areas, museums, entertainment venues, an airport, railway, and other critical infrastructure. In addition to this, the government also plans to raise another $500 million which will be reserved for buying Bitcoin with the intention of boosting the value of El Salvador’s currency.
This news is a major development for the world of cryptocurrency and demonstrates El Salvador’s commitment to innovation and financial inclusion. It is also expected to have a positive effect on the nation’s economy by increasing the value of its currency. Only time will tell how this law will impact the nation and the world, but it is sure to be an exciting journey.