El Salvador drafts legal framework for Bitcoin bonds and building infra for Bitcoin city

El Salvador’s Finance Minister Alejandro Zelaya announced on January 4 on local television about 20 bills pertaining to financial markets and investments in securities to be sent to the Congress, Reuters reported. These bills will ensure legal foundation and framework and related market regulation for the issuance of securities and Bitcoin bonds in crypto assets.
Zelaya explained that the bills will provide legal structure and security to all those who will buy Bitcoin bonds.A government representative explained that the funds generated from the purchase of Bitcoin bonds will be used to build infrastructure for Bitcoin City and buy more of the crypto. The country has so far purchased 1391 bitcoins.
On November 20, President Bukele announced about raising $1 billion and the building of the first-ever Bitcoin city backed by Bitcoin bonds, near a volcano. Half of the funds raised through bond issuance would be utilized for buying more bitcoins and half for the construction of the upcoming Bitcoin city. The project will be located in La Union, the eastern region of El Salvador, where geothermal power will be accessed from the Conchagua volcano. This power will also be used for Bitcoin mining operations to generate more digital assets for the state treasury. The construction of the Bitcoin city would begin in 2022.
The Bitcoin bonds or volcano bonds will pay an interest yield of 6.5 percent and enable fast-track citizenship for investors. The city would be carbon neutral because of utilizing the volcano energy for its power generation. It will also offer incentives such as zero income, capital gains, or property taxes to attract further investment.
(For the latest crypto news and investment tips, follow our Cryptocurrency page and for live cryptocurrency price updates, click here.)