Alejandro Zelaya, El Salvador’s finance minister, said on Tuesday that his government will introduce 20 bills to Congress to secure a legal framework for the country’s soon-to-be-released Bitcoin bonds.
Covering the financial markets and investment in securities, the legislation will provide a legal foundation to market regulation and issuance of crypto tokens. The Minister said on national television:
“(The bills are) to provide a legal structure and legal certainty to everyone who buys the Bitcoin bond.”
The Bitcoin bonds are part of president Nayib Bukele’s ambitious plans of building Bitcoin City in the east of the country. Half of the funds raised from the Bitcoin bonds will be used to build infrastructure, while the other half will be invested in Bitcoin.
The bonds, worth $1 billion with a coupon rate of 6.5% in order to finance the construction of Bitcoin City, were announced in November. Construction of the city will commence this year and it will be powered by thermal energy. Furthermore, there will not be any taxes in there except for value-added tax (VAT), Bukele happily announced.
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Source: Igaming
