The Congress of Salvador has issued a permit to regulate digital securities, which will allow the country to receive funds by issuing a sovereign bond on the Bitcoin blockchain.
It is expected that this "volcanic bond" will provide about $ 500 million for the construction of a "bitcoin city" that will be powered by geothermal energy from a nearby volcanic area.
The draft law would also provide for the creation of government agencies, such as the Digital Assets Commission and the Bitcoin Fund Management Agency, which would be responsible for regulating and promoting the cryptocurrency industry, as well as managing, protecting and investing funds from public placements of digital assets conducted by Salvador.
The legislation was accepted by 62 votes in favor and 16 against, but opponents argued that it did not meet the real needs of the people of El Salvador. These bonds will be priced in U.S. dollars, will have a maturity of 10 years and an annual yield of 6.5%. Salvador's Finance Minister Alejandro Zelaya confirmed the financial stability of his country, despite various problems in the cryptocurrency sphere caused by the collapse of several large projects.
