- The Minister of Economy of El Salvador, María Luisa Hayem Brevé, presented the project known as the “Digital Assets Issuance Law” which will seek to support the government plan to raise one billion dollars and invest them in the construction of “Bitcoin City”.
- The project intends to establish a National Digital Assets Commission, which would be focused on overseeing the administration of Bitcoin funds.
- Among the things that the commission will be able to do is to invest the funds received through the public offers of digital assets made by the State of El Salvador and it is expected that one of those offers will be the so-called Volcano Bonds, which are bonds guaranteed in Bitcoin.
The digital environment has been hit hard throughout this year, due to the bearish period known as crypto winter, which has left a cold wave in companies and consortiums focused on the cryptocurrency business.
Many are those who have succumbed to the winter of cryptocurrencies, however, while for some this 2022 is like being in “The Wall” of Winterfell from the famous Game of Thrones series, receiving the onslaught of the cold and the “white walkers”. ”, for others the digital climate is more similar to the Valley of Arryn, with a temperate climate, fertile land and abundant volcanic rock.
We are referring, of course, to a country located in Central America, which decided to be the first of its kind to adopt Bitcoin as legal tender, The Savior.
El Salvador proposes digital securities bill
In this nation governed by Nayib Bukele, digital assets seem to be on the rise, especially since recently the Minister of Economy, María Luisa Hayem Brevé, presented a bill which corroborates the government’s plan to raise billion of dollars and invest them in the construction of a “Bitcoin city”.
The project known as theDigital Assets Issuance Law” digital securities, which consists of 33 pages and was dated November 17, tIt intends to establish a National Digital Assets Commission, which would be focused on overseeing the regulation of digital asset issuers, service providers, and other participants involved in the “public offering process” of digital securities.
This Agency would be a public law institution with legal personality of a technical nature, with economic, financial and administrative autonomy and its own assets.
The agency should be in constant contact with the government through the Ministry of Economyin addition to having the authorization to establish offices abroad.
Digital Assets Issuance Law
It should be said that the “Law for the Issuance of Digital Assets” comes a year after Bukele signaled the launch of Bitcoin Bonds or “volcano bonds” with the aim of collecting a billion dollars to finance his project “Bitcoin City“, which includes the construction of a city on the country’s coast, which will be financed with Bitcoin-backed bonds.
Half of the funds will be used to accumulate Bitcoin, and the rest will go towards infrastructure and bitcoin mining powered by geothermal energy.
These bonds were expected to be available for launch in early 2022, however, according to Finance Minister Alejandro Zelaya, they have been delayed partly due to the crypto winter and partly due to economic instability as a consequence. of war between Russia and Ukraine.
Bitcoin for Christmas
According to some sources, the bill could be given the green light by legislators to be implemented before Christmas. In this regard, the director of technology of the Bitfinex cryptocurrency exchange, Paolo Ardoino, a company that is collaborating with the government of El Salvador for the issuance of Volcano Bonds, seems to be optimistic about that moment:
“The digital securities law will allow El Salvador to be the financial center of Central and South America,” he said in his Twitter account. Twitter.
El Salvador and Bitcoins
It is important to remember that in 2021, under the orders of Nayib Bukele, the nation became the first in the world to make Bitcoin a legal tender.
Subsequently, the country managed to get hold of more than 2,301 Bitcoins for approximately $103.9 million dollars, which allowed the government to use its investment to build schools and hospitals.
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