El Salvador appears to be one step closer to launching the Bitcoin Bond after the administration of President Nayib Bukele provided lawmakers with a bill for the bond's digital securities. Under the new law, the island government also intends to legalize all digital assets. El Salvador hopes to attract funds and investors with the help of the Bitcoin Volcano Bond. The country plans to sell bonds on the Liquid Network, a federated Bitcoin sidechain, for $1 billion (or around Rs. 8,118 crore). Between a $500 million (approximately Rs. 4,060 crore) direct investment in Bitcoin and a $500 million investment in the construction of regional energy and BTC mining infrastructure, the profits of the bonds will be split.
A representative for the president's office issued a copy of the 33-page study on Tuesday, which was originally reported by Bloomberg. The law calls for a commission on digital assets and a Bitcoin Fund Management Agency to regulate debt sales pertaining to cryptocurrencies.
It's important to remember that the August release of the Bitcoin Bond was delayed (via Fortune). The issue would be postponed until late 2022, according to Paolo Ardoino, CTO of Bitfinex, the bond's official exchange, who made this announcement at the time.
Despite the doubts of some, the new development indicates that El Salvador is getting closer to issuing the bonds.
Interested parties may contribute as little as $100 after issuance (roughly Rs. 8,118). To finance the building of the country's income tax-free Bitcoin City, which would use geothermal energy from a nearby volcano to mine cryptocurrencies, the Bitcoin Bond will be issued in an effort to generate $1 billion (approximately Rs. 8,118 crore).
The $1 billion (approximately Rs. 8,118 crore) raised would be split into two parts, with $500 million (about Rs. 4,060 crore) going toward financing Bitcoin City infrastructure and the other half going toward buying more Bitcoin, with bondholders receiving a return from the asset's rise.
El Salvador presently has over 2,300 Bitcoins in reserve, and has recently pledged to buy 1 Bitcoin every day despite the bear market.
