- El Salvador is raising $500 million in funds through the world’s first sovereign blockchain bond to build Bitcoin City.
- The city would have geothermal energy from a nearby volcano for mining cryptocurrencies.
- The country would earmark $500 million for buying Bitcoin, and any appreciation in the digital currency’s price would be ultimately shared with bondholders.
El Salvador, a country located in Central America, is working on raising funds for the development of a Bitcoin City. The government passed a law allowing Bitcoin bond issuance, underpinning the sale of the first-ever sovereign Bitcoin bond.
El Salvador congress approves digital securities law by 62 votes to 16
El Salvador, a Central American nation by the Pacific Ocean, is working on raising funds for building its Bitcoin City. This makes El Salvador the first country worldwide to recognize Bitcoin as a legal tender two years ago.
The country’s congress approved a law to regulate the issuance of other digital assets by state and private entities: the ruling party lawmakers, allies of President Nayib Bukele, back the bill. Bukele aims to attract national and foreign investors while creating new financing opportunities for citizens, companies and the government of El Salvador.
El Salvador’s Legislative Assembly has just approved, by an overwhelming majority, the new Digital Securities Law!
— Nayib Bukele (@nayibbukele) January 11, 2023
Forward, always forward…
More information on this thread https://t.co/8C21ZilyVP
The digital securities law allows the nation to raise funds through the first-ever sovereign blockchain bond. Congress approved the bill by 62 votes to 16. The 47-article law received 62 votes in favor out of a total of 84 seats. Its purpose is to establish the legal framework that grants legal certainty to transfer operations to any title of digital assets used in public issuance offers.
Further, the law establishes the creation of the National Commission for Digital Assets and the Bitcoin Funds Administration Agency, which will manage, safeguard, and invest funds from public offerings of digital assets carried out by the government.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin whales could prevent BTC price first monthly loss of 2023 through this move
Bitcoin price is inching towards the first monthly loss of 2023. At press time, BTC price is 4.4% below $29,233, its price on May 1. If BTC fails to regain lost ground, the asset is in for its first monthly loss of the year.
Cardano price rallies with surge in DEX volume and new meme coin launch
Cardano-based decentralized exchange Minswap registered a large spike in transaction volume since the beginning of May. Between May 1 and 30, transaction volume surged from $10 million to $72 million.
Shiba Inu eyes recovery as holders pull more than 44 trillion tokens off exchanges
The reserve of Shiba Inu tokens across cryptocurrency exchange platforms has consistently declined between March and May. SHIB holders have pulled 44.53 trillion tokens off exchanges.
XRP likely set for price rally as network activity heats up
XRP Ledger’s native token XRP registered an increase in address activity on Monday, when more than 490,000 addresses interacted on the network, signaling an impending price rally.
Bitcoin: BTC delays inevitable crash to $25,000
Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.