A new bill that confirms the government’s plan to raise $1 billion and invest it in the construction of a “Bitcoin city” was introduced by the Bukele government.
El Salvador finally took a decisive step toward putting its ambitious “Bitcoin bonds” project into action despite the downturn in the cryptocurrency market. The Pastor of the Economy, Maria Luisa Hayem Brevé, presented a bill affirming the public authority’s arrangement to raise $1 billion and put them into the development of a “Bitcoin city.”
El Salvador’s lawmakers are urged to develop a legal framework for the use of digital assets in public issuances in a 33-page digital securities bill dated November 17.They ought to likewise think about every one of the prerequisites for this system and the commitments of backers and resource suppliers.
The government of Nayib Bukele introduced the “Bitcoin bonds” or “volcano bonds” in 2021.The initial plan called for issuing bonds worth about $1 billion and using the money to build a “Bitcoin city” at the base of the Colchagua volcano. It is said that the city would be an ideal location for crypto-mining due to the hydrothermal energy produced by the volcano. Bitcoin BTC tickers down$16,672 would still be invested directly with half of the raised funds.
The project has been repeatedly postponed over the past year. At one point, its launching phase was scheduled to begin in March, but it was moved to September, only to be postponed once more due to “security reasons.”
Legislators may approve the bill before Christmas, according to some sources. Chief technology officer Paolo Ardoino of Bitfinex, a cryptocurrency exchange that works with the El Salvadorian government on the bonds project, seems optimistic about that time:
El Salvador acquired over 2,301 BTC for approximately $103.9 million on Sept. 7, 2021, when it made BTC legal tender. The investment’s profit was even used to build schools and hospitals during the bull market. However, 77.1% of Salvadoran citizens would prefer that the government stop “spending public money on Bitcoin” as the country’s economy continues to struggle.