On January 11, El Salvador passed a measure legalising digital assets, clearing the way for issuing Bitcoin bonds. In November, the effort was initially presented to the parliament.
Just 62 lawmakers voted in favour of the bill; therefore, it did not win unanimous approval. As the bill describes, digital securities will create a legal order that offers legal certainty to transfer operations with any title of digital assets employed in the issue of public offerings in El Salvador.
— Asamblea Legislativa 🇸🇻 (@AsambleaSV) January 11, 2023
According to local media, the bill’s primary objective is to make it easier to issue bonds backed by the Volcán volcano. The bill’s detractors said that it wouldn’t do much to fix people’s concerns.
The law proposes, among other things, forming a national digital assets commission to oversee the crypto regulatory framework and advocate for the industry. The most intriguing aspect of the measure is that it would establish a Bitcoin Fund Administration Agency. The government of El Salvador is planning to hold a public sale of digital assets, with the proceeds going toward the administration, protection, and investment of these assets.
El Salvador’s Bitcoin Bond Experiment
Since El Salvador switched to Bitcoin, the country has continued making headlines. It has generated a lot of attention; however, not all of it has been pleasant.
Tim Draper, a millionaire investor, has predicted that the country will become one of the wealthiest in the world due to its Bitcoin holdings. Contrarily, it was reported last year that the vast majority of El Salvadorans had given up their Chivo Bitcoin wallets.
The country also tried to educate its citizens about Bitcoin by introducing the concept and its inner workings into classrooms. It needs to be clarified what effect Bukele’s pledge to keep buying Bitcoin will have on the country.
Bukele has such faith in Bitcoin that he intends to acquire one BTC daily, despite widespread scepticism and negative coverage in the media.
Despite months of upheaval in the country, Bukele continues to have strong support. However, it does not appear that his financial experiments have fazed him, and the government will likely continue to defy expectations.