El Salvador became the first nation to adopt Bitcoin as legal tender, and its next step was to create a city in honor of the mother of all cryptocurrencies. In line with all these initiatives, Nayib Bukele, president of the nation, announced the launch of the first Bitcoin bonds, with a value of 1 billion dollars. However, the lack of a regulation that accompanies this initiative has meant that until now the idea has not been executed.
Bukele and the Finance Minister announced the launch of the bonds a few months ago, but the Legislative Assembly had not addressed the matter. Now, María Luisa Hayem, the nation's economy minister, is speaking out by presenting a legislative project that enables the implementation of an adequate regulatory framework for the arrival of the volcano bonds. This financial instrument aims to finance the creation of the Bitcoin City and, later, the mining of this crypto.
"Nayib Bukele presents to Congress the first cryptocurrency law in El Salvador. This would officially expand the legal framework, which would not only regulate the use of Bitcoin in the country, but of all cryptocurrencies"
One of the main objectives would be an alternative financial mechanism for the Government, which would find a new source of financing. The International Monetary Fund assured the volatility of Bitcoin could pose a risk to consumer protection and financial stability and integrity.
If the project comes to an end, after being discussed by Congress, this will be the law that regulates the cryptographic industry in the country. So far, there is only one law that regulates the crypto environment, the Bitcoin Law, so the arrival of this regulation would mean the creation of the first registry of digital providers, the legalization of cryptocurrencies beyond Bitcoin and the regulation of taxes on cryptocurrencies.