The Salvadoran government is getting ready for the Bitcoin bond. The government will submit 20 bills to legislators for regulating the digital currency. And working on the constitution to issue a $1 billion bitcoin bond.
The Salvadoran Government Is Getting Ready For The Bitcoin Bonds
The Salvadoran finance minister told in an interview that the government asked to submit a legal structure for those who want bitcoin bonds. Additionally, last year El Salvador marked its name in history, to become the first country who approve bitcoin as legal tender.
After signing up as the first country to approve bitcoin as a legal tender. Now they are working on the legislation that will make a structure to issue $1 billion bitcoin bonds.
Recently, in a local media interview, Salvadoran finance minister, Alejandro Zelaya told that the government has made 20 bills that will form the legal and financial structure for bitcoin bonds. But, there has been no clarity of the timeline for this legislation to be provided to the legislators.
Words By El Salvador’s Finance Minister:
“Bitcoin needs a regulation, a legal framework because we don’t have any law to issue crypto-backed securities. We don’t have a law to oversee exchanges.”
First proposed, in Nov.2021 the government looking forward to issuing bitcoin bonds worth $1 billion to investors. Furthermore, half of the fundraiser would use to purchase the bitcoin. Additionally, the other half would be utilized for the infrastructure of bitcoin. This is expected to fund their Bitcoin city. Which is approx to cost $300,000 bitcoin to construct.
The bitcoin bonds would have a term of ten years and consist of 6.5% annual interest to draw investors. Moreover, the bitcoin bonds are predicted to be issued by Blockstream. As tokenized bonds to the liquid network.
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