El Salvador Passes a Bill on Digital Securities Permitting Bitcoin Bonds
The parliamentary assembly of El Salvador has adopted a digital securities law that would alter crypto regulation.
El Salvador Passes a Bill on Digital Securities Permitting Bitcoin Bonds With the passage of its digital securities statute, El Salvador has made progress. This will let the company issue Bitcoin bonds.
The parliamentary assembly of El Salvador adopted a digital securities measure on January 11, enabling the nation to issue Bitcoin-based bonds. In November, the measure was initially proposed to the parliament.
The law was not approved unanimously, with 62 votes in favour. The digital securities law would “create the legislative framework that provides legal certainty to transfer activities involving any title of digital assets utilized in public offerings conducted in El Salvador.”
According to local media sources, the primary goal of the law is to allow the expected issuance of “Volcán” bonds. Those opposed to the law said that it did not address the public’s issues.
The measure proposes, among other things, the establishment of a national digital assets commission that would function as a crypto regulatory agency and market booster. The measure would establish a Bitcoin Fund Administration Agency, which is maybe the most interesting provision.
Since adopting Bitcoin, El Salvador has been often featured in the press. It has not always been favourable, particularly for President Nayib Bukele, but it has generated a great deal of interest.
Tim Draper, a millionaire, has said that the country’s Bitcoin investments will make it one of the wealthiest countries in the world. In contrast, last year it was reported that the majority of El Salvadorians had abandoned their Chivo Bitcoin wallets.
Additionally, the nation has pushed for Bitcoin education, educating students about cryptocurrency and its operation. Bukele has committed to continue purchasing BTC, which might be positive or negative for the nation.