El Salvador introduces bill to launch bitcoin “Volcano Bonds”

The Minister of Economy of El Salvador presented the bill to the Legislative Assembly for approval.

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After exactly one year since the initiative was announced, today it was confirmed that El Salvador is taking the first legal steps to approve the launch of its long-awaited Bitcoin Bonds.

Through the Minister of Economy, Maria Luisa Hayem Brevé, a bill has been introduced to the country’s assembly that will make the “Volcano Bonds” possible.

This is the name given by President Nayib Bukele to an initiative that seeks to raise international capital for the development of El Salvador as a pioneer nation in the adoption of Bitcoin.

According to official documents of the Legislative Assembly, under the title of “Law of Issuance of Digital Assets”, the State proposes to establish a legal framework for any transfer of digital assets or public offering securities to be carried out in the national territory.

It is also proposed to clarify the basis for regulating any actor engaged in issuing, providing or operating with cryptocurrencies, such as bitcoin (BTC), in the country. In this way, it is expected that the government will be able to issue $1 billion in bitcoin bonds, which will be launched on the Liquid sidechain.

50% of these bonds will be earmarked for the purchase of BTC, while the other 50% will be invested in the development and construction of energy infrastructure for cryptocurrency mining within the country.

The presentation of the legal document has been celebrated by the bitcoin community, who have been intimately involved in the Central American country’s adoption of the ecosystem.

For example, Bitfinex’s chief technology officer, Paolo Ardonino, described the initiative as a step towards El Salvador becoming “the financial hub of Central and South America”.

On the other hand, although President Bukele has not made any statements about the launch on his social networks, he has dedicated himself to share on his Twitter the announcement and impressions generated by the legal presentation of the “Volcáno” bonds.

The news has generated great commotion since the appearance of these bonds in the market has been expected for a year, whose launch was delayed due to the development of this law, the conflicts in Russia and Ukraine, as well as the bitcoin bear market, according to official statements.

It is also striking that the country has decided to launch the initiative now when the bitcoin bear market is at its peak and the FTX debacle has affected the confidence in the ecosystem.

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