BlocksInform
El Salvador, the first country to have legal tender on Bitcoin (in September 2021), has adopted a law authorizing the country to issue sovereign bonds guaranteed by Bitcoin.
According to a report by Bloomberg, El Salvador’s congress has approved a new digital securities law that would allow for raising funds via the “world’s first sovereign blockchain bond.” According to a Bloomberg report, the El Salvador Congress has approved a new digital securities law that would raise money through the "first sovereign blockchain link in the world."
#Plenaria90??? Con 62 votos a favor, creamos la Ley de Emision de Activos Digitales. pic.twitter.com/g1poXwLoH3
— Asamblea Legislativa ???? (@AsambleaSV) January 11, 2023
(@AsambleaSV) 11 January2023.
President Bukele made the following statement:
Forward, always forward…
More information on this thread???? https://t.co/8C21ZilyVP
— Nayib Bukele (@nayibbukele) January 11, 2023
Bitfinex and Tether CTO Paolo Ardoino had this to say to his over 192K Twitter followers:
“Today El Salvador ???? "What about El Salvador?? Sets up a legal framework for all digital assets (excluding. MSM has always argued that the Digital Assets Act would never pass, again with little or no understanding of ES engagement. I can already see their articles as of tomorrow with "mais mais mais mais mais..."... El Salvador is on an amazing trajectory, providing to its citizens their best tools for freedom.“
El Salvador is following an astonishing path, providing its citizens with the best tools for freedom." The development is expected to use the geothermal power of a nearby volcano to exploit the btc and other crypto assets.
Within the framework of the bill, an additional 500 million dollars raised will be set aside for the purchase of Bitcoin, with the appreciation of the crypto-asset transmitted along the bondholders.
The report states that the draft law, which is yet to be adopted by President Bukele, has been criticized by credit rating agencies, in addition to the International Monetary Fund (IMF). As a result, El Salvador bonds trade at a "sharp haircut" because of investors' concerns about default risk.
The bloomberg report also mentioned that the government had initially planned to sell Bitcoin bonds in the first quarter of 2021.
According to a report by Decrypt, this bill “separates cryptocurrencies from all other assets and financial products, including central bank digital currencies”s () and it also “separates Bitcoin from the rest of the crypto market, identifying them as digital securities.”
