{"id":873,"date":"2022-01-05T10:47:59","date_gmt":"2022-01-05T10:47:59","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=873"},"modified":"2022-01-05T10:47:59","modified_gmt":"2022-01-05T10:47:59","slug":"el-salvador-prepares-20-bills-to-provide-legal-framework-for-bitcoin-bonds","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=873","title":{"rendered":"El Salvador prepares 20 bills to provide legal framework for Bitcoin bonds"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>El Salvador\u2019s government, led by President Nayib Bukele, has moved ahead with plans to issue Bitcoin (BTC) bonds by preparing 20 bills designed to provide a legal framework for them.<\/p>\n<p>Alejandro Zelaya, head of the treasury, told Salvadoran media El Mundo on Tuesday that the bills will cover regulations about issuing securities as cryptocurrency to ensure the viability of the Bitcoin bonds that were proposed in November 2021. He said:<\/p>\n<p>\u201c[This is] to provide a legal structure and legal certainty to everyone who buys the Bitcoin bond.\u201d<\/p>\n<p>However, he did not propose a timeframe for the legislation to be submitted to lawmakers.<\/p>\n<p>The $1 billion sought by the bond issuance would be used to fund the Bitcoin City initiative, which President Bukele has promised will provide \u201cdigital and technological education, geothermal energy for the entire city, and efficient and sustainable public transport.\u201d<\/p>\n<p>One of the features of the Bitcoin City is a Bitcoin\u00a0mining operation that harnesses the geothermal power generated by a volcano to power mining rigs \u2014 leading to the bonds being dubbed \u201cVolcano Bonds.\u201d The mining operation\u00a0mined\u00a0its first 0.00599179 BTC on Oct. 1, 2021.<\/p>\n<p>Funds from the bond issue could also be used to pay down an $800-million Eurobond issue, which will mature in January 2023. Zelaya told El Mundo that the country would need to find financiers to help fill their obligation to pay off the Eurobonds, which could come from Bitcoin bonds or from \u201cinstitutional offers from various investment banks\u201d rather than another Eurobond issue.<\/p>\n<p>\u201cWe can simply make payments without creating another Eurobond in the traditional market, and we can find a bond that is denominated in dollars and receives payment in Bitcoin.\u201d<\/p>\n<p>A Eurobond is a debt tool for countries to raise funds in a denomination other than their own currency.<\/p>\n<p>Zelaya also indicated that there is significant interest in the Bitcoin bond from investors, as it offers exposure to BTC and a 10-year maturity of 6.5% interest.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>President Bukele predicts Bitcoin rally to $100K, further legal adoption and more<\/em><\/strong><\/p>\n<p>The issuance of Bitcoin bonds would not, however, preclude the Central American nation from participating in traditional finance. Zelaya said, \u201cWe are not going to abandon the traditional market.\u201d<\/p>\n<p>Notable partners with El Salvador in the creation of the Volcano Bonds include blockchain developer Blockstream and iFinex, the latter of which is closely related to stablecoin Tether (USDT). The bonds are expected to be issued on Blockstream\u2019s Liquid Network and processed by iFinex.<\/p>\n<p>Bukele tweeted his 2022 predictions on Sunday, saying that \u201cBitcoin City will commence construction\u201d and \u201cVolcano bonds will be oversubscribed.\u201d<\/p>\n<p lang=\"en\" dir=\"ltr\">2022 predictions on #Bitcoin:<\/p>\n<p>\u2022Will reach $100k<br \/>\u20222 more countries will adopt it as legal tender<br \/>\u2022Will become a major electoral issue in US elections this year<br \/>\u2022Bitcoin City will commence construction<br \/>\u2022Volcano bonds will be oversubscribed<br \/>\u2022Huge surprise at @TheBitcoinConf<\/p>\n<p>\u2014 Nayib Bukele  (@nayibbukele) January 2, 2022<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/el-salvador-prepares-20-bills-to-provide-legal-framework-for-bitcoin-bonds\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>El Salvador\u2019s government, led by President Nayib Bukele, has moved ahead with plans to issue Bitcoin (BTC) bonds by preparing 20 bills designed to provide a legal framework for them. Alejandro Zelaya, head of the treasury, told Salvadoran media El Mundo on Tuesday that the bills will cover regulations about issuing securities as cryptocurrency to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":874,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-873","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/873","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=873"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/873\/revisions"}],"predecessor-version":[{"id":875,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/873\/revisions\/875"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/874"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=873"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=873"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=873"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}