The legislative arm of El Salvador approved the passage of a new cryptocurrency bill on January 11. According to a statement by the National Bitcoin Office, the passed bill is geared towards legalizing BTC-backed bonds.
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During the legislative session, the bill secured 62 votes to ensure its passage to President Nayib Bukele. Only 16 legislators voted against the bill.
The country aims to harness the crypto bond in paying down its sovereign debt. More so, El Salvador will rely on the bond to finance the development of its Bitcoin City project and Bitcoin mining infrastructure.
El Salvador plans to make its proposed BTC City project a landmark crypto-mining hub powered by hydrothermal energy from a nearby volcano.
According to the country’s Bitcoin Office, Bitifinex has been appointed to provide technological aid for the Volcano Bond. The country believes it can fully leverage the bond through the efficiency of the appointed exchange.
Now, Bitifinex has reiterated its commitment to working with the authorities to ensure the bonds’ success.
As revealed by Bitfinex, the bond’s volcano symbol manifested from the location of the country’s BTC City.
Beyond BTC-backed bonds, the new bill creates a legal framework for other digital assets. It also empowers the regulatory agency to monitor the application of securities law in protecting users from bad actors.
The El Salvador Bitcoin Office affirms the country’s plans to evolve the city into a special economic zone similar to Hong Kong. The city looks to provide tax benefits, crypto-friendly and clearer regulations, and foster incentivized Bitcoin businesses to El Salvador users.
Under the leadership of President Nayib Bukele, El Salvador became the first country to adopt Bitcoin as a legal tender in June 2021. However, the move resulted in a loss of $60 million for the country within a year.
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See original on DailyCoin
Source: Cryptocurrency - investing.com
