El Salvador’s legislature has approved a digital security bill that also paves the way for the issuance of Btc bonds.
El Salvador has approved the Digital Property Law to create legal protection for the transfer or issuance of payments in cryptocurrencies. The bill also provides legal framework for Bitcoin-backed bonds, also known as “Volcano Bonds,” which Latin American countries want to pay government bills and finance to build the Btc community.
It was approved with 62 votes and 16 against this law, and it is expected that it will become law after the President Nayib Bukele approves it. Bukele took to Twitter shortly after to congratulate the announcement, announcing that “The Legislature of El Salvador has approved, by a large majority, the new Digital Securities Law! Moving forward, and – always keep going…”
First announced at the end of November last year, the new bill will help El Salvador “provide unprecedented consumer protection against criminals in the ‘crypto’ space as it stands firm in we are open for business for anyone who wants to build the future. us with bitcoin,” according to a statement from the National Board of Bitcoin (ONBTC) of El Salvador under the presidency of Bukele.
The bill separates cryptocurrencies from assets and other financial products, including central bank digital currencies (CBDCs) – digital versions of fiat currencies regulated under each country’s financial guidelines. Essentially, it separates Bitcoin from the rest of the crypto market, identifying them as a digital security.
The new law also creates the National Commission for Digital Assets, a regulatory body responsible for enforcing security laws and protecting the rights of digital asset buyers and providers in El Salvador, and preventing those Fraud is operating in the country. El Salvador became the first country in the world to legalize Bitcoin in 2021, a move that was praised by many in the Bitcoin community but criticized by the World Bank, IMF and global credit rating agencies.
Citizens have also protested against Bitcoin laws several times. The country is also known for buying Bitcoin, with President Bukele announcing last November that his government would buy one Bitcoin per day, although he did not say how long.
El Salvador’s Volcanic Bitcoin (BTC) Price
President Bukele launched the El Salvador Btc Bond Project in November 2021 and saw the Latin American country issue $1 billion in bonds on Blockstream’s Liquid Network, a Bitcoin sidechain. The idea is to invest half the money in Bitcoin and use the other half for the infrastructure needed to build Bitcoin City, where no taxes are paid for Bitcoin supporters around the world.
Under the government’s original proposal, these bonds will be denominated in US dollars and pay 6.5% per annum for 10 years with a five-year lock-in period, making it easier for investors to invest. application for citizenship in the country. The project was originally launched in March last year, but was repeatedly postponed due to poor sales.
Now, with the new bill passed, El Salvador will finally start the project, and the ONBTC says that the production of the electricity chain “will start soon”.