El Salvador’s government is hoping to issue $1 billion in Bitcoin bonds
The government of El Salvador, led by President Nayib Bukele, has moved ahead with its plan to issue Bitcoin bonds by preparing 20 bills designed to provide a regulatory framework for them.
El Salvador prepares legislation for first Bitcoin bonds
Not content with using Bitcoin as an official currency, El Salvador is planning new legislation as part of a move to issue $1 billion worth of Bitcoin bonds.
The Central American country’s Minister of Finance, Alejandro Zelaya, told Telecorporación Salvadoreña that the government would send around 20 laws to Congress before issuing its Bitcoin bond. Zelaya said that the bond, otherwise known as EBB1, would promote innovation and financial freedom in El Salvador.
“Since a Bitcoin bond has never been issued, a series of regulations must be issued,” he said.
The country is proposing a scheme to benefit Bitcoin investors residing in El Salvador, including granting them citizenship. “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,” he said, noting that the United States offers similar incentives to individuals who make investments in the country. He also noted that the laws would relate to the country’s plans to become a debt market center in partnership with the Central American Bank for Economic Integration.
President Nayib Bukele announced the country’s ambitions to issue its first Bitcoin bond in November when he revealed that it would build a city dedicated to the world’s leading cryptocurrency. He also promised that Bitcoin City residents would be exempt from paying income taxes, property taxes, capital gains taxes, and payroll taxes. The country plans to use half of its bonds for energy and mining infrastructure, and the rest will be invested in Bitcoin.
Recently, as AZCoin News reported, Bukele tweeted his 2022 predictions on Jan. 2 that “Bitcoin City will commence construction” and “Volcano bonds will be oversubscribed.”
This tweet will age well ?
— Nayib Bukele ?? (@nayibbukele) January 2, 2022
El Salvador officially approved a Bitcoin legal tender in September in what has been described as a watershed moment for the crypto industry. Still, the road to its adoption is far from smooth. Thousands of Salvadoran residents have partly opposed Bukele’s government because of its Bitcoin adoption policy, while other critics have included Vitalik Buterin, the IMF, and the World Bank.
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