El Salvador moves closer to issuing Bitcoin Bonds by the passing of 20 bills in the Congress. Let’s find out more about this.
El Salvador and Bitcoin have a unique relationship. A relationship that has never been seen before. El Salvador became the first and currently the only country in the world to regard Bitcoin as legal tender. Under the leadership of Nayib Bukele, El Salvador has embraced Cryptocurrencies last year.
The 20 bills
The government of El Salvador will introduce 20 bills to give legal framework to the upcoming Bitcoin bonds. Bukele has previously said that he will soon build a Bitcoin City. The 20 bills will sanction funds for building the city as well as for procuring more Bitcoin. For this mega project, the country has an aim to issue a $1 billion bond, also known as the Volcano Bond.
The Finance Minister of El Salvador, Alejandro Zelaya broke the news of the 20 bills. The mister said that the 20 bills will be sent soon to the Congress for discussion. The bills will cover financial markets and investment in securities to provide a legal framework to issue the bonds, he revealed, talking to a local broadcaster. “(It is) to provide a legal structure and legal certainty to everyone who buys the Bitcoin bond,” he said.
Hopes and predictions
Bukele has been really optimistic about Bitcoin. The country’s government expects Bitcoin to boost its economic growth and make new investment and employment opportunities for El Salvadorians. Indeed, the president hopes to see Bitcoin at rise to make this vision come true. Bukele previously predicted that Bitcoin will hopefully reach the $100,000 mark this year.
Experts however, are split on their opinion, while some experts say that Bitcoin will continue its bearish trend for quite some time, other’s say that Bitcoin might soon triumph the $100,000 mark. However, experts have unanimously expressed caution about the extreme volatility seen in the crypto world.
About the Bitcoin bonds
Bitcoin bonds are a kind of fixed deposits of the Crypto world. They can provide a less risky way to invest in Cryptocurrencies to investors who are willing to invest in crypto but feel intimidated by the daily price fluctuations we see with Cryptocurrencies.
The bonds will most likely start issuing from this year. The President had recently predicted in a tweet that these bonds will be oversubscribed. He also predicted in the same tweet that the Bitcoin City will soon commence construction in 2022.
El Salvador moves closer to issuing Bitcoin Bonds by the passing of 20 bills in the Congress. The country has been a stern supporter of Bitcoin, and with this move has proven its dedication for a Bitcoin inclusive Economy.
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