El Salvador will introduce 20 bills in order to create a legal basis for the upcoming Bitcoin bonds. According to the Salvadoran government, funds will be raised for infrastructure construction in Bitcoin City as well as buying more bitcoin.
El Salvador Drafting Legal Framework for Bitcoin Bonds
El Salvador’s finance minister, Alejandro Zelaya, said in an interview on local television Tuesday that his government will send about 20 bills to Congress concerning the country’s bitcoin bonds.
He explained that bills would cover investment in securities and financial markets to create a legal basis for issuing Bitcoin bonds. According to the finance minister:
This is to give legal structure to all who purchase the Bitcoin bond.
Salvadoran officials explained that the Bitcoin Bonds will raise half the money needed to construct infrastructure, and the remaining to buy bitcoin.
Nayib Bukele, the president of El Salvador, said in November that he would issue Bitcoin bonds in an amount of $1 billion at a coupon rate 6.5% to fund construction of Bitcoin City. Bukele stated that the city would be powered by a volcano, and no taxes will be collected there other than value-added tax.
Bitcoin bonds are expected to be issued in the coming year. Bukele said this week that the bitcoin bonds will be highly sought-after. The construction of Bitcoin City will begin in the new year, he said.
El Salvador passed a law allowing bitcoin to be legal tender in place of the U.S. Dollar. The country has since purchased 1,391 bitcoins.
Are you concerned that El Salvador will submit 20 bills for a legal structure to allow bitcoin bonds to be issued? Comment below.
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