A new bill confirms the government’s plan to raise $1 billion and invest it in the construction of a “Bitcoin city,” as introduced by Bukele’s government.
El Salvador finally takes a decisive step toward putting its ambitious “Bitcoin bonds” project into action despite the downturn in the cryptocurrency market. A bill that confirmed the government’s plan to raise $1 billion and invest it in the construction of a “Bitcoin city” was introduced by Economy Minister Maria Luisa Hayem Brevé.
El Salvador’s public issuances of digital securities are the subject of a 33-page digital securities bill dated November 17.They should also think about all the requirements for this process as well as the responsibilities of issuers and providers of assets.
The government of Nayib Bukele introduced the “Bitcoin bonds” or “volcano bonds” in 2021.The initial plan called for issuing bonds worth about $1 billion and using the money to build a “Bitcoin city” at the base of the Colchagua volcano. It is said that the city would be an ideal location for crypto-mining due to the hydrothermal energy produced by the volcano. The remaining fifty percent of the raised funds would be invested in Bitcoin directly.
The project has been repeatedly postponed over the past year. At one point, its launching phase was scheduled to begin in March, but it was moved to September, only to be postponed once more due to “security reasons.”
Legislators may approve the bill before Christmas, according to some sources. Bitfinex’s chief technology officer, Paolo Ardoino, who works on the bonds project with the El Salvadorian government, seems optimistic about that time.
El Salvador acquired over 2,301 BTC for approximately $103.9 million on Sept. 7, 2021, when it made BTC legal tender. The investment’s profit was even used to build schools and hospitals during the bull market. However, 77.1% of Salvadoran citizens would prefer that the government stop “spending public money on Bitcoin” as the country’s economy continues to struggle.