Amid the cryptocurrency market downturn, El Salvador is finally taking a decisive step towards realizing its ambitious “bitcoin bond” project. Economy Minister Maria Luisa Hayem Brevé presented a bill confirming the government’s plan to raise $1 billion and invest it in the construction of a “bitcoin city.”
33 page digital security paper charge, dated November 17, urges lawmakers to create a legal framework using digital butts in public broadcasts from El Salvador. They should also consider any requirements for this procedure and the obligations of issuers and asset providers.
They were “volcano bonds” or “bitcoin bonds”. introduced by the government Nayib Bukele in 2021. The original plan called for the issuance of roughly $1 billion of these bonds and the allocation of the proceeds to the construction of a “bitcoin city” at the foot of the Colchagua volcano. Reportedly, the volcano’s hydrothermal power would make the city a perfect cryptocurrency mining facility. Half of the funds raised would still be invested directly in Bitcoin.
Over the past 12 months, the project has been repeatedly delayed — at one point it was scheduled to launch in early March, then pushed back to September, only to be pushed back once more for “security reasons”.
According to some springs, lawmakers can approve the law before Christmas. Paolo Ardoino, CTO of cryptocurrency exchange Bitfinex, which is working with the government of El Salvador on a bond project, seems optimistic about that time:
After making BTC legal tender On September 7, 2021, El Salvador accumulated over 2,301 BTC for about $103.9 million. During the bull market, the profit from the investment was even used to build schools and hospitals. As the country’s economy continues to struggle, 77.1% of citizens prefer the Salvadoran government to stop “spending public money on bitcoins”.