Maria Luisa Hayem Brevé, the Minister of the Economy for El Salvador, has introduced a measure to legalize the issuing of digital assets, clearing the way for the country to issue bitcoin-backed “volcano” bonds.
The submission of the measure, which had been suggested earlier this year, initiates the first key milestone before the bonds can become public. A source close to President Nayib Bukele told Bitcoin Magazine that the next step is to get it approved, and that this should happen before Christmas. On November 17, the proposal was conveyed to the government, and it was presented to Congress in the future.
Additionally, El Salvador plans to issue Bitfinex with a license that will allow the exchange to handle and list the bond issuance.
Paolo Ardoino, CTO of cryptocurrency exchange Bitfinex, tweeted:
“Digital securities law will enable El Salvador to be the financial center of central and south America.”
El Salvador Not Slowing Down
El Salvador’s groundbreaking plan to entice finance and investors was first revealed in the same period a year ago. The Bitcoin bonds were offered using Blockstream’s Liquid Network for a total of $1 billion, and their proceeds will go toward supporting the widespread use of volcano-powered Bitcoin mining in the country at the present time.
With the money from the bonds, $500 million will go directly to bitcoin, and the same amount will be invested in building energy and bitcoin mining infrastructure in the area.
Bond purchasers will receive a 6.5% annual yield and expedited citizenship processing. Once the initial $500 million has been converted to fiat currency, the government will distribute half of the additional gains to investors in the form of a Bitcoin Dividend.
These distributions will occur once a year using the Blockstream asset management system.
Moreover, Nayib Bukele, president of El Salvador and a prominent Bitcoin proponent, recently projected that a more trustworthy, decentralized system will replace the central banking systems currently utilized in the West.