{"id":43770,"date":"2023-01-12T05:58:40","date_gmt":"2023-01-12T09:58:40","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=43770"},"modified":"2023-01-12T05:58:42","modified_gmt":"2023-01-12T09:58:42","slug":"el-salvador-passes-bill-to-encourage-bitcoin-backed-bonds","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/el-salvador-passes-bill-to-encourage-bitcoin-backed-bonds\/","title":{"rendered":"El Salvador passes bill to encourage Bitcoin-backed bonds"},"content":{"rendered":"\n<h5 class=\"wp-block-heading\" id=\"h-el-salvador-recently-enacted-legislation-that-establishes-the-legal-foundation-for-a-bitcoin-backed-bond-dubbed-the-volcano-bond-which-would-help-pay-the-country-s-debt-and-finance-the-development-of-its-envisioned-bitcoin-city\">El Salvador recently enacted legislation that establishes the legal foundation for a <a href=\"https:\/\/coinscreed.com\/staging\/el-salvador-maintains-that-the-volcano-bonds.html\" target=\"_blank\" rel=\"noreferrer noopener\">Bitcoin-backed bond<\/a>, dubbed the &#8220;Volcano Bond,&#8221; which would help  pay the country's debt and finance the development of its envisioned &#8220;Bitcoin City.&#8221;<\/h5>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"818\" height=\"575\" src=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/01\/image-11.png\" alt=\"El Salvador passes bill to encourage Bitcoin-backed bonds\" class=\"wp-image-43774\" srcset=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/01\/image-11.png 818w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/01\/image-11-300x211.png 300w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/01\/image-11-768x540.png 768w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/01\/image-11-150x105.png 150w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/01\/image-11-750x527.png 750w\" sizes=\"(max-width: 818px) 100vw, 818px\" \/><figcaption class=\"wp-element-caption\">El Salvador passes bill to encourage Bitcoin-backed bonds<\/figcaption><\/figure>\n\n\n\n<p>On January 11, the <a href=\"https:\/\/www.google.com\/search?q=El+Salvador+passes+bill+to+encourage+Bitcoin-backed+bonds&rlz=1C1SQJL_enNG889NG889&oq=El+Salvador+passes+bill+to+encourage+Bitcoin-backed+bonds&aqs=chrome..69i57j33i160.2558j0j9&sourceid=chrome&ie=UTF-8\" target=\"_blank\" rel=\"noreferrer noopener\">National Bitcoin Office of El Salvador<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><g id=\"wpil-svg-outbound-7-icon-path\" fill=\"none\" clip-path=\"url(#clip0_31_188)\">\r\n                            <path d=\"M9.16724 14.8891L20.1672 3.88908\" stroke-linecap=\"round\"\/>\r\n                            <path d=\"M13.4497 3.53554L20.5208 3.53554L20.5208 10.6066\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n                            <path d=\"M17.5 13.5L17.5 16.26C17.5 17.4179 17.5 17.9968 17.2675 18.4359C17.0799 18.7902 16.7902 19.0799 16.4359 19.2675C15.9968 19.5 15.4179 19.5 14.26 19.5L7.74 19.5C6.58213 19.5 6.0032 19.5 5.56414 19.2675C5.20983 19.0799 4.92007 18.7902 4.73247 18.4359C4.5 17.9968 4.5 17.4179 4.5 16.26L4.5 9.74C4.5 8.58213 4.5 8.0032 4.73247 7.56414C4.92007 7.20983 5.20982 6.92007 5.56414 6.73247C6.0032 6.5 6.58213 6.5 7.74 6.5L11 6.5\" stroke-linecap=\"round\"\/>\r\n                        <\/g>\r\n                        <defs>\r\n                            <clipPath id=\"clip0_31_188\">\r\n                                <rect fill=\"white\" height=\"24\" width=\"24\"\/>\r\n                            <\/clipPath>\r\n                        <\/defs><\/svg><\/span><\/a> tweeted about the bill's passing and said it will soon start issuing the bonds.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"embed-twitter\"><blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"es\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/Plenaria90?src=hash&ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">#Plenaria90<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a>\u270d\ud83c\udffb Con 62 votos a favor, creamos la Ley de Emisi\u00f3n de Activos Digitales. <a href=\"https:\/\/t.co\/g1poXwLoH3\" target=\"_blank\">pic.twitter.com\/g1poXwLoH3<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a><\/p>&mdash; Asamblea Legislativa \ud83c\uddf8\ud83c\uddfb (@AsambleaSV) <a href=\"https:\/\/twitter.com\/AsambleaSV\/status\/1613278171041759232?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">January 11, 2023<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/div>\n<\/div><\/figure>\n\n\n\n<p>With 62 votes in favor and 16 votes against, the measure was approved on Jan. 11. It will become a law if President Bukele ratifies it.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"embed-twitter\"><blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Today El Salvador builds on our first-mover advantage by passing landmark legislation establishing a legal framework for all digital assets that are not bitcoin. As well as those issued on bitcoin.<br><br>The law also paves the way for volcano bonds which we will soon begin issuing.<\/p>&mdash; The Bitcoin Office (@bitcoinofficesv) <a href=\"https:\/\/twitter.com\/bitcoinofficesv\/status\/1613274373066051587?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">January 11, 2023<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/div>\n<\/div><\/figure>\n\n\n\n<p>The Volcano Bond, or Volcano Tokens, would enable El Salvador to acquire funds to pay down its sovereign debt, support the development of the Bitcoin City, and establish Bitcoin mining infrastructure, according to<a href=\"https:\/\/coinscreed.com\/staging\/defi-protocol-raises-10m-from-bitfinex-ava-labs.html\"> cryptocurrency exchange Bitfinex<\/a>, which is the technology provider for the bonds.<\/p>\n\n\n\n<p>The country's Bitcoin City, which is slated to become a sustainable crypto-mining center fuelled by hydrothermal energy from the nearby Conchagua volcano, is where the bonds' volcanic description originated.<\/p>\n\n\n\n<p>According to Bitfinex, the city would be a special economic zone, similar to those in China, with tax benefits, legislation that supports cryptocurrencies, and other incentives for people to start Bitcoin companies.<\/p>\n\n\n\n<p>The goal of the bonds is to generate $1 billion for the nation, with $500 million going toward the creation of the special economic zone.<\/p>\n\n\n\n<p>The tokenized bonds would have a ten-year maturity date, be issued in US dollars, and have an annual interest rate of 6.5%, according to the first plan.<\/p>\n\n\n\n<p>The Volcano Token was developed by Bitcoin supporter Samson Mow, who also told Cointelegraph that the nation could become a &#8220;major&#8221; financial center if the measure were to pass.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe move to pass the new Digital Securities Law, and enable new instruments like the <a href=\"https:\/\/coinscreed.com\/staging\/bukele-government-unveiled-a-bill-to-launch-the-bitcoin-bonds.html\" target=\"_blank\" rel=\"noreferrer noopener\">Bitcoin Bonds<\/a>, will help El Salvador to pay off their existing debts and will be critical to transforming the country into a major financial center of the world.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>The measure establishes a new regulatory body that will be in charge of enforcing the securities laws and offering protection against dishonest actors, and it also provides a legal framework for all digital assets generated on platforms other than Bitcoin.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"embed-twitter\"><blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">4\/ With the passing of this digital securities law, El Salvador will offer unprecedented consumer protection from bad actors in the &#39;crypto&#39; space while also firmly establishing that we are open for business to all those who wish to build the future with us on bitcoin.<\/p>&mdash; The Bitcoin Office (@bitcoinofficesv) <a href=\"https:\/\/twitter.com\/bitcoinofficesv\/status\/1613274737207304192?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">January 11, 2023<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/div>\n<\/div><\/figure>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>El Salvador recently enacted legislation that establishes the legal foundation for a Bitcoin-backed bond, dubbed the &#8220;Volcano Bond,&#8221; which would help pay the country&#8217;s debt and finance the development of its envisioned &#8220;Bitcoin City.&#8221; On January 11, the National Bitcoin Office of El Salvador tweeted about the bill&#8217;s passing and said it will soon start [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":43774,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[83],"tags":[5482,456,13053],"class_list":["post-43770","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin-bonds","tag-el-salvador","tag-volcano-bonds-2"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/01\/image-11.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/43770","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=43770"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/43770\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/43774"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=43770"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=43770"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=43770"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}