The Legislative Assembly of El Salvador approved on Wednesday a bill for the issuance of digital assets which paves the way for the issuing of president Nayib Bukele’s bitcoin bonds.
The bill was approved with 62 votes for and 16 against and is set to become law after it is ratified by president Nayib Bukele.
The new legislation will allow the issuance of all digital assets and broader crypto token classification. It brings a definitive regulatory clarity for tokenised securities, altcoins, and businesses that offer services focused on digital assets other than bitcoin.
It also pays the way for “Volcano Bonds”, or Volcano token, which would help El Salvador to raise funds to pay off the country’s sovereign debt, create bitcoin mining infrastructure and finance the development of “Bitcoin City”.
The new digital asset regulatory framework also creates the New Digital Assets Commission, which provides oversight over securities law andprotects the rights of digital assets holders and distributors in El Salvador.
El Salvador is the first country in the world where bitcoin is regarded as legal tender, along with the US dollar. The law was adopted in September 2021.
El Salvador president Bukele is a long-time supporter of bitcoin and an avid promoter of crypto ideology. According to Bitcoin Treasuries, the country at the moment is in possession of 2,380 bitcoin with total value of $43 million.
At the ongoing Miss Universe pageant in New Orleans (USA), the participant representing El Salvador came out on stage in a bitcoin suit. This symbolizes the importance for the country of adopting the first cryptocurrency as a legal tender. The video was posted on the official page of Alejandra Guajardo, representing El Salvador at the pageant.
