El Salvador’s “Digital Asset Issuance” legislation is in its final stage to get approval from the country’s president.
El Salvador is a Bitcoin-friendly country, which adopted Bitcoin as a currency in Sep 2021. To allow the citizens to accept Bitcoin payment, the country launched a national digital Bitcoin wallet “Chivo” and also installed 200 Bitcoin ATMs across the country. By taking inspiration from this country, the Central African Republic (CAR) also adopted Bitcoin as a legal tender in early 2022.
On 11 Jan 2023, El Salvador’s Digital Asset Issuance bill was passed by 62 votes. And now this legislation requires only final permission from El Salvador president Nayib Bukele, which is not going to be a big challenge for this bill because Bukele himself is a Bitcoin leader & the whole thing is part of his decision to create a better environment for Bitcoin adoption in the country.
The approval of this bill will allow the country to issue a Bitcoin-backed bond “Volcano Bond”. Through the Bitcoin bond, the country aimed to raise funds to develop a “Bitcoin City” and also to invest in Bitcoin mining operations.
On 12 Jan, the Country’s Bitcoin office also shared this news and noted that it will help the country to issue Volcano bonds soon.
Initially, the Bitcoin-Bond concept from El Salvador country came into light in late 2021 and was expected to issue this bond in early 2022 but many regulatory foundations, second wave of the COVID pandemic & global financial downturn stopped the country from issuing this bond.
At the time of writing this article, the price of BTC is $18,170 and this price is 4.15% high over the last 24 hours’ trade price.
Since last month, El Salvador has been buying one Bitcoin per day.