Bitcoin Bonds Bill
El Salvador passes landmark legislation, approving the new digital securities law, which provides a legal framework for all digital assets and lays the building blocks for the much anticipated, soon-to-be-issued, Volcano Bonds. The law reaffirms Bitcoin as money in El Salvador, while providing consumer protection against fraudulent efforts related to other cryptocurrencies. Simply put, if it’s Bitcoin, it’s money, and if it’s not Bitcoin, it’s a security that must follow specific regulations.
So what’s a ‘Volcano Bond’, anyway?
The new legislation is fundamental in the issuance of El Salvador’s Bitcoin Bonds, aka Volcano Bonds. According to an article in Bitfinex, “The Volcano Bond, which is more accurately described as Volcano Token, is a digital token which would help El Salvador to raise capital to pay down its sovereign debt, direct funds towards the creation of Bitcoin mining infrastructure, and fund the construction of ‘Bitcoin City’. El Salvador’s Volcano Token is targeted to raise $1 Billion and would be backed by the proceeds generated from its geothermal Bitcoin mining operation, which harnesses energy from the nation’s active volcanoes. By leveraging the nation’s natural resources and geothermal energy, El Salvador’s Bitcoin mining industry would utilise only renewable energy to create new Bitcoin, making investment in the bond very attractive to both traditional and ESG investors.”
And now there is a National Bitcoin Office?!
The securities legislation has also called for a National Bitcoin Office (ONBTC) to oversee all Bitcoin projects, an important effort to block out scammers and those looking to take advantage of the system.
The new legislation legitimizes El Salvador as a global leader in this financial revolution that we call Bitcoin.
If you are interested in keeping up on future legislation and Bitcoin news in El Salvador, we recommend following the below sources for accurate information. The future is now. Come and experience it in El Salvado!