El Salvador sets the basis for the bill

El Salvador’s Bitcoin Volcano Bond has taken a big step towards its issuance. A bill on digital securities was introduced yesterday by the Salvadoran Congress after the project faced delays.

1 year ago (and 1 day) – I cried out @nayibbukele About the idea of ​​volcano bond.

I believe this is the way to resist the IMF and crooked Wall Street banks.

Today, a new securities bill was introduced to make that possible. #bitcoin + #buquele = 🇸🇻🚀 https://t.co/QMDXjcIQvf

— M🌋X KEIZER Tweet Poet & Award Winning Journalist (@maxkeiser) November 23, 2022

El Salvador, the first country to adopt Bitcoin as a legal tender, is paving the way for BTC-backed volcano bonds. President Najib Bukele announced last November a project aimed at attracting investors and capital to El Salvador.

According to President Bukele’s plans, the BTC bond, named after the Conchagua volcano, the source of energy for the mining operation, will raise $1 billion.

That billion is split in half. Half will be invested directly in BTC, and the rest of his $500 million will be used to finance and build energy and mining infrastructure, as well as build Bitcoin City.

Bitcoin City is expected to be a huge project that mainly attracts foreign investors. The plan is not low profile, as evidenced by the statement that Bitcoin City will be the “Singapore of the West”.

The city VAT will only be 10%. All other taxes are omitted. Ensuring and sustainably produced energy is produced by nearby volcanoes. This is especially useful for Bitcoin mining.

Buyers of the bonds will receive a 6.5% return after 5 years and also receive an expedited citizenship option. Once the first $500 million is monetized, any additional profits will be split in half with investors as a Bitcoin dividend.

Bitcoin Volcano Bond When?

The bill, which was introduced in the El Salvadoran Congress yesterday, aims to create government guidelines so bond buyers can buy with confidence.

A new Digital Securities Act has been submitted to Congress, #VolcanoBonds🇸🇻🌋 pic.twitter.com/sICU8lBUTx

— Samson Mow (@Excellion) November 23, 2022

“The Digital Securities Act will allow El Salvador to become the financial center of Latin America.” I have written Paolo Ardoino, CTO of Bitfinex.

The bonds will be issued on Blockstream’s commercialized Liquid Network, while iFinex, the parent company of Bitfinex and Tether, will handle the trading. Bitfinex will be licensed in El Salvador to make this issuance.

According to the government of El Salvador, dividend distributions will be made annually through Blockstream’s wealth management platform.

The next step is for the Salvadoran Congress to pass a bill, giving the Nuevas Ideas party, led by President Bukele, a parliamentary majority.according to sauce Close to the government, the law is expected to be passed before Christmas.

In an earlier statement, Paolo Ardoino clarified that the volcano bond issuance is scheduled for another two to three months.

At the time of writing, Bitcoin continues its modest recovery. BTC is trading at $16,548 and facing a major resistance zone above $15,600.