El Salvador Passes Bill to Issue Bitcoin Bonds

El Salvador's Congress has approved a digital securities law that will allow the country to raise funds with the world's first sovereign bond on the Bitcoin blockchain. The bill on the so-called “volcanic bonds” will establish a legal order that provides legal certainty for the issuance and circulation of digital securities for an unlimited range of potential investors. The securities are intended to raise investments of around $500 million to build a “bitcoin city” that will receive geothermal energy for mining digital assets from a nearby volcano. Among other things, the bill proposes the creation of a national Digital Assets Commission to act as a cryptocurrency regulator and market promoter.. It also provides for the creation of a Bitcoin Fund Administration Agency, whose activities will be focused on “managing, protecting and investing funds from public offerings of digital assets conducted by El Salvador and the income from these offerings.” The bill was passed by 62 votes to 16. His opponents said that he did not respond to the true problems of the people of El Salvador. The bonds will be denominated in US dollars with a maturity of 10 years and a stated yield of 6.5% per annum. Earlier, against the backdrop of the development of a crisis in the cryptocurrency industry caused by the collapse of a number of large projects, the Minister of Finance of Salvador, Alejandro Zelaya, said that nothing significant threatens the financial stability of the state that declared bitcoin as a means of payment.