Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
El Salvador drafts 20 bills in order to give legal structure to Bitcoin bonds.
El Salvador is preparing to present 20 draft laws to provide a legal framework for its upcoming bonos Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. . The funds raised from them will be used, in principle, to build infrastructure for Bitcoin City and buy more bitcoins The Salvadoran government explained.
El Salvador’s Finance Minister Alejandro Zelaya said in an interview on local television this week that his government will send about 20 bills to Congress on the bonds. Bitcoin of the country.
Also the president of the country, Nayib Bukele, indicated it in Twitter, alluding to the publication of the news by Reuters:
It’s to hedge and guarantee #Bitcoin #VolcanoBonds , but also a complete re-engineering of the economy and the way a nation state does business.
Everyone in search of freedom: this is the place to come.
Everybody searching for freedom: this is the place to come ???????? https://t.co/zupEKC3usB
— Nayib Bukele ???????? (@nayibbukele) January 5, 2022
What will the bills say?
The bills will cover financial markets and securities investment to provide a legal basis for bond issuance. Bitcoin , the minister explained, adding that the legislation will create a framework to cover the corresponding market an area or arena, online or offline, in which commercial dealings are conducted. regulation and issuance of securities in cryptoassets. The finance minister described:
This is to provide a legal structure and legal certainty to everyone who buys the Bitcoin bond.
Zelaya explained that half of the funds raised from the bonds will be used for the Bitcoin will be used to build infrastructure and the rest to buy bitcoins.
Later he spoke in more detail to the Salvadoran media The World and added other uses for the bonds.
Other uses of bonds
There, he clarified that these bonds will not only serve to createBitcoin City but could also be used to honor the maturity of an $800 million Eurobond issue in January 2023. The minister acknowledged that this year must go out to seek funding to honor that commitment and denied that the government has no alternatives to issue new debt. He assured: “We’ve had institutional offers from several investment banks.” but he said: “I can’t reveal their names because we’re in conversation.” .
Last week, Bloomberg noted that El Salvador had the worst performance of its bonds worldwide with falls in its value between 30% and 40% at the end of 2021. In addition, the agency said that the deterioration was exacerbated by the government’s ability to pay the country’s government to meet the maturity of 2023 before its bet on the Bitcoin, The new Legislative Assembly – dominated by the ruling party – has been in power since its inauguration.
El Salvador’s president, Nayib Bukele, announced in November his plan to issue bonos Bitcoin billion at a rate of 6.5 per cent to finance the project. the construction of Bitcoin City. The city will be powered by energy from a nearby volcano and there will be no taxes there, except for the value-added tax (VAT), Bukele said.
The issuance of the bonos Bitcoin is scheduled for this year. Bukele said, he believes there will be an oversubscription . He also noted that the construction of Bitcoin City start this year.
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