El Salvador approves the Digital Securities Law and paves the way for Bitcoin-backed bonds
The government has approved the law that opens the door to all cryptocurrencies and lays the foundations for Bitcoin-bonds and the Bitcoin City.
El Salvador’s legislative assembly on Wednesday approved a digital assets law aimed at legally protecting transfers or debt issues with cryptocurrencies, Agence France Presse reports.
“El Salvador’s Legislative Assembly has just approved, by an overwhelming majority, the new Digital Securities Law! Forward, always forward,” wrote President Nayib Bukele o Twitter. The 47-article law received 62 votes in favor out of 84 seats in Congress and paves the way for the issuance of a Bitcoin-backed bond – known as the “Volcano Bond” – that will be used to pay off sovereign debt and finance the construction of the long awaited Bitcoin City. Bukele’s government has already purchased 2,381 bitcoins for $107 million.
El Salvador’s Legislative Assembly has just approved, by an overwhelming majority, the new Digital Securities Law!— Nayib Bukele (@nayibbukele) January 11, 2023
Forward, always forward…
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El Salvador was the first country to adopt bitcoin as a legal currency in September 2021, using it along with the US dollar, which it adopted as its currency in 2001. In November 2021, Bukele announced the construction of a Bitcoin City in the eastern department of La Union, which would be powered by geothermal energy from a volcano in the region. On November 17, Bukele announced that his government would buy one bitcoin a day, without specifying for how long.