El Salvador is the first country, and so far the only country in the world, to provide the status of legal tender to Bitcoin. The country is currently getting ready to introduce around twenty bills, which are intended to give a legal framework pertaining to Bitcoin Bonds that are upcoming.
The El Salvador government is led by President Nayib Bukele, who is known for his pro-Bitcoin stance. The government announced that the funds that will be raised will be used to develop the infrastructure of Bitcoin City. It will also be used to purchase more Bitcoin.
Bitcoin City and El Salvador
The country of El Salvador is in plans to develop a complete city using Bitcoin. In an effort to bring this project to life, the government of El Salvador is aiming to issue around $1 billion in bonds. This is in order to develop an area around the Gulf of Fonseca. This location is near a volcano, which has led to these bonds receiving the name the ‘Volcano Bonds’.
The El Salvador Government and Bitcoin
The government’s finance minister, Alejandro Zelaya, revealed last week that the government is sending twenty bills pertaining to the bond to Congress. These bills are designed to cover areas such as financial markets, as well as investment in securities. It also aims to provide a legal foundation when it comes to issuing such bonds.
The government under President Bukele hopes that Bitcoin has the potential to stimulate economic growth in the country, as well as provide improved options for investments.