A new bill confirms the government’s plan to raise $1 billion and invest them into the construction of a “Bitcoin city.”
El Salvador finally took a significant step toward the implementation of its grandiose “Bitcoin bonds” concept during the recent decline in the cryptocurrency market.
A law was submitted by the Minister of the Economy, Maria Luisa Hayem Brevé, reaffirming the government’s intention to generate $1 billion and use it to build a “Bitcoin city.”
A 33-page measure on digital securities, issued November 17, calls on legislators to provide a legislative framework for utilising digital assets in El Salvador’s public issuances.
The obligations of issuers and asset providers should also be taken into account, along with all other regulations for this process. The administration of Nayib Bukele first issued “volcano bonds” or “Bitcoin bonds” in 2021.
A “Bitcoin city” was to be built at the foot of the Colchagua volcano according to the initial plan, which called for issuing about $1 billion worth of those bonds.
According to legend, the city would be the ideal location for cryptocurrency mining thanks to the volcano’s hydrothermal energy. Still, half of the monies generated would be put into Bitcoin BTC ($16,443) directly.
The project has experienced multiple delays over the past 12 months. At one point, its launch phase was slated to begin in March, but it was later moved to September and then again for “security reasons.”
Some reports claim that the legislation might be approved by lawmakers before Christmas. Regarding that period, Paolo Ardoino, the chief technology officer of the bitcoin exchange Bitfinex, which is working on the bonds initiative with the government of El Salvador, sounds upbeat:
On September 7, 2021, El Salvador declared BTC to be legal tender and subsequently accumulated approximately 2,301 BTC worth roughly $103.9 million. The investment’s return was even put toward the construction of hospitals and schools during the bull market. However, 77.1% of Salvadorans want the government to cease “spending public money on Bitcoin” while the nation’s economy continues to deteriorate.