El Salvador Drafts 20 Legislations For Bitcoin Bond Bills
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- Bitfinex is the bookmaker for the bonds.
- With a yield of 6.5 percent, the bond would be worth $1 billion.
El Salvador became the world’s first country to recognize Bitcoin as legal cash in 2021 under President Nayib Bukele. Thanks to the legislation, volcano Bonds, a $1 billion Bitcoin bond offering, will now have a legal and financial framework in place.
The country’s government is drafting 20 legislation. In order to serve as a legal basis for its upcoming intention to issue Bitcoin-based debt instruments. Regulations for the issuance of bitcoin securities would be addressed by the legislation, according to remarks made by Treasury Secretary Steven Mnuchin.
An official structure for the previously proposed bitcoin bonds is being developed in El Salvador. With a yield of 6.5 percent, the bond would be worth $1 billion. It will raise money for Bitcoin City and the government to purchase additional bitcoin. Furthermore, mining infrastructure will get half of the proceeds from the bonds.
$300 Million Committed
Bitfinex is the bookmaker for the bonds, while Blockstream is the technological consultant. According to Samson Mow, as of December 7, 2021, investors in the bitcoin bond have orally committed $300 million to the bonds. Traditional and institutional investors and the general public are the intended audiences for the bonds.
Alejandro Zelaya, the country’s finance minister, indicated that the administration would submit to Congress for approval of 20 measures relating to bonds. Furthermore, bonds may be issued in accordance with the legislation, according to Zelaya. From a legal sense, this will help build trust in the bonds. Moreover, investing in bitcoin might be risky, but investors can avoid that risk entirely with these bonds. According to President Nayib Bukele, construction would begin this year after issuing the bonds.
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