El Salvador is to send 20 bills to Congress in relation to a foundation for issuing Bitcoin (BTC) bonds. In addition, Bitcoin (BTC) settlers in the country will be granted citizenship as part of the country’s efforts to mainstream the biggest cryptocurrency.
Despite being the first nation to make Bitcoin (BTC) legal tender, El Salvador is planning a new regulation about issuing worth $1 billion in Bitcoin (BTC) bonds to further and fasten the adoption of Bitcoin (BTC).
Alejandro Zelaya, the Finance Minister of the Central American country, has revealed to the press that the government has been working on sending 20 laws about issuing Bitcoin (BTC) bonds to Congress. Moreover, the primary goal of the Bitcoin (BTC) bond, also known as EBB1, will be to facilitate financial freedom as well as innovation in El Salvador. Given that a Bitcoin (BTC) bond is truly unprecedented, the legislation has to be carefully crafted for the seamless initiation and continuation of the process.
The Finance Minister has also disclosed the plans for granting residency to Bitcoin (BTC) investors. The United States offers similar conditions as an incentive for investors to invest in the country. The new plans for the legislation could also make headway on the Central American Bank for Economic Integration cooperation with El Salvador through which the country plans to become a debt market center.
On another note, President Bukele stated that the country intended to issue the first Bitcoin (BTC) bond back in November, around the time when he announced the construction of Bitcoin City, which aims to be partially financed by this bond. As mentioned before by President Bukele, the Bitcoin City will be a place dedicated to the crypto world, where there will be restaurants, residential spaces, as well as a plaza, and commercial spaces among others. The incentive of citizens is the exemption from paying taxes on property, income, capital, and payroll.
On the other hand, the country’s policy of using the bond will be divided into two halves; 50% of the bond will be used for power and mining infrastructure, while the remaining 50% will be used in investing in Bitcoin (BTC). In addition to this, the bond is being developed on the Liquid Network by Blockstream.
According to the interview from Telecorporación Salvadoreña, Zelaya noted that the plans towards building the Bitcoin City have not yet transformed into law, henceforth the country needs to develop a democratic process. Additionally, regarding the question about El Salvador’s process of investing in Bitcoin (BTC), Zelaya acknowledged that the government is working with the team at Chivo, which is specifically supporting the digital wallet of El Salvador to accumulate Bitcoin (BTC). Meanwhile, President Bukele has announced on Twitter that the country has continued to buy the dip on multiple occasions, especially during the market crash, while currently, the country holds 1,391 Bitcoin (BTC) equivalent to $64.9 million at the time of writing.
Even though El Salvador has adopted Bitcoin (BTC) legal cryptocurrency in September of the last year, it has not been able to implement its adoption so far. There have been numerous Salvadoran residents who have protested against President Bukele’s government and did not approve of the government’s policies regarding Bitcoin (BTC). Similarly, the World Bank, the International Monetary Fund (IMF), and Ethereum (ETH) co-founder Vitalik Buterin have criticized the decision of the President.
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