El Salvador’s ambitious campaign for “Bitcoin bonds”, which was created during a period of falling cryptocurrency prices, is already moving towards realization.
Legislation that outlines the government’s intention to spend one billion dollars on the creation of a Bitcoin City. was suggested by the Minister of the Economy, Maria Luisa Hayem Brevé.
On November 17, a 33-page measure on digital securities was presented to El Salvador House of Representatives. It requested that the House of Representatives draft a legal framework to allow the country to use its digital assets in public offerings.
Volcano bonds, also known as Bitcoin bonds or Bitcoin bonds, were introduced to the financial market by Nayib Bukele, who was president from 2021-2022.
In the initial proposal, bonds were to be sold with a face-value of nearly one billion dollars. Proceeds from the sale would go towards the development of a Bitcoin City at the Colchagua base. This proposal was scrapped because it was determined that the sale would not be financially profitable.
Because the city is located in close proximity of the volcano, it is thought that the city’s hydrothermal energy will make it a good location to build a cryptocurrency mining facility.
If this proposal was approved, Bitcoin would receive a direct investment equaling fifty percent of its total amount.
The past year and half has seen numerous postponements that have continually delayed the undertaking. The project had originally been scheduled to begin in March. However, it was postponed twice. Once again, this was due to “security reasons.”
There are a variety of sources that have raised the possibility that the legislature will approve the proposal prior to the winter holidays.
El Salvador received more than 2,301 Bitcoin as their reward when Bitcoin was officially recognized as legal money on September 7, 2021. This amount is roughly equivalent to $103.9 million dollars
The stock market boom was a time when investors could even use their gains to help build educational and healthcare institutions.
However, 77.1% believe that the government should stop spending public money on Bitcoin. Especially considering the country’s continuing decline in its economy.