El Salvador takes a new step toward issuing its bitcoin bonds
El Salvador’s presidency sent lawmakers a bill on digital assets, taking a new step toward raising US$1 billion through the first sovereign bond on the blockchain.
A spokesperson for the presidency presented the 33-page-long bill, which calls for a digital assets commission and a bitcoin fund management agency to oversee cryptocurrency debt issuances.
The text states that this aims to “create a legal framework for transferring digital assets used in public issues in El Salvador, as well as regulate the requirements and obligations of issuers and providers of digital assets.”
The proposed bonds, which involve a minimum investment of US$100, seek to help finance the construction of the tax-free Bitcoin City, which would mine digital currencies using geothermal energy from a nearby volcano.
The bonds would raise US$500 million for Bitcoin City’s infrastructure and another US$500 million to buy bitcoin (XBT), with any appreciation of the digital currency ultimately shared with bondholders.
Last year, El Salvador became the first country to make bitcoin legal tender. President Nayib Bukele, a cryptocurrency advocate, has attempted to sell bitcoin-backed bonds to international investors, but with little success.
The controversial move is stoking concerns about the country’s solvency amid stalled talks with the International Monetary Fund over funding to help plug the budget gap.
With information from Bloomberg
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| TRX | 0.34 | +0.28% | -4.73% | 0.33 | 0.34 | 0.33 | 436,576,064 |
| XLM | 0.16 | -1.33% | -64.46% | 0.16 | 0.16 | 0.16 | 89,559,864 |
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| NEAR | 1.65 | +2.42% | -40.55% | 1.62 | 1.68 | 1.61 | 187,591,264 |
| ATOM | 1.40 | -2.36% | -70.15% | 1.44 | 1.44 | 1.40 | 18,626,964 |
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