After adopting Bitcoin as a legal tender, El Salvador is in the news again for endorsing a digital securities bill. This is another giant stride in the country’s financial development as the President remains bullish on Bitcoin.
El Salvador To Issue Bitcoin Bonds
On January 11th, the country’s legislative assembly greenlighted a digital securities bill. Meanwhile, this bill was first brought before the parliament last year November.
Sixty-two members of the legislative assembly voted in support of the bill. The latest bill will establish a legal framework that provides clear and specific rules for transferring any virtual assets used in public offerings in El Salvador.
According to local news reports, the primary aim of the legislation is to promote the issuance of volcano (Volcán) bonds. Meanwhile, few individuals were not in support of the bill.
The critics argued that the bill would not solve the problem of ordinary people. The measure stipulates that the country should create a virtual assets commission.
The duty of this commission will be to promote and regulate the crypto market. Furthermore, the country will also create a BTC Fund Administration Agency.
The agency’s focus will be on managing, protecting, and utilizing funds from public sales of digital assets conducted by the Salvadoran government and the profits generated from these sales. After becoming the first country to legalize Bitcoin, El Salvador has constantly been in the spotlight.
However, several agencies, including the International Monetary Fund (IMF), criticized the country for taking such a step, highlighting that cryptocurrencies are volatile.
President Bukele Drives Crypto Adoption With BTC Education
On the good side, the famous billionaire Tim Draper stated that the nation’s investment in Bitcoin could rank it among the world’s wealthiest countries. Unfortunately, recent reports indicate that many El Salvadorians no longer use their Chivo BTC wallets.
Meanwhile, President Bukele remains very confident in BTC despite the recent drop in its price. Last Month, he announced that the country would start buying one BTC daily.
Currently, the country is pushing toward BTC education to drive massive adoption. A recent video showed an El Salvadorian teacher showing students how to send and receive BTC using the Lightning Network.
In 2022, a Bloomberg report described El Salvador’s Bitcoin initiative as a failed plan. However, the President replied to the criticism, saying it was “full of lies.”
The country has witnessed several financial unrests in the last few months regarding its Bitcoin plans, but Bukele remains bullish. He has often stated that he remains unperturbed by the current state of the market and will keep accumulating more BTC.
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