El Salvador On The Way To Debut Bitcoin-Backed “Volcano” Bonds
- The Minister of the Economy of El Salvador, Maria Luisa Hayem Brevé, has submitted a digital assets issuance bill to the central American country’s legislative assembly on Nov. 17 and it was presented before Congress on Tuesday.
- The pioneering initiative by the goverment of El Salvador under the leadership of Nayib Bukele, aims to attract investments from around the globe to the country.
- The digital securities law establishes the creation of a “National Digital Assets Commission” that will verify the issuance of public offerings of digital assets.
The Minister of the Economy of El Salvador, the first country to adopt Bitcoin, the world’s oldest cryptocurrency, as legal tender, Maria Luisa Hayem Brevé, has submitted a digital assets issuance bill to the central American country’s legislative assembly which has given way for the nation’s much-anticipated bitcoin-backed “volcano” bonds.
As per a report from Bitcoin Magazine, the pioneering initiative by the goverment of El Salvador under the leadership of Nayib Bukele, aims to attract investments from around the globe to the country which is not economically very sound. As per a Twitter post, the law establishes the creation of a “National Digital Assets Commission” that will verify the issuance of public offerings of digital assets.
“Among the powers of the Commission are: managing and updating the records of issuers, certifiers, service providers and public offerings of digital assets, in addition to authorizing and canceling these records.,” states another Twitter post.
The document submitted by the Minister of the Economy of El Salvador states that the issuers may be the State, natural or legal persons, private or public that make offers or issue digital assets “with the aim of selling or trading them on exchange or negotiation platforms”, whether regulated or not. Interestingly, the providers and issuers must pay an amount to register and to place a public offer.
The act of submission of the law in El Salvador completes the first milestone before the bonds can see the light of day. However, the next step is to get the law approved which the government expects to happen before Christmas this year, as per a source very close to Bukele. While the bill was submitted on Nov. 17, it was present before the Congress on Tuesday.
“According to the bill, the Bitcoin Fund Administration Agency (AAB) will be created, which will manage, safeguard and invest the funds obtained from the offers of digital assets made by the State.
The AAB will be directed by an administrator appointed by the president,” mentions a Twitter post.
Additionally, the Bitcoin Fund Administration Agency will be responsible for investing the funds that are obtained by the State on a “priority” basis in public works and projects “that benefit the entire population.” Bank or crypto accounts will be opened to store and disburse said funds.
Paolo Ardoino, CTO of cryptocurrency exchange Bitfinex, said that the digital securities law will “enable El Salvador to be the financial center of central and south America.”
Meanwhile, in the near future, Bitfinex will be licensed in order to be able to process and list the bond issuance in El Salvador.