The El Salvadoran government has unveiled a bill that may establish extensive guidelines for the nation’s crypto industry. The bill will also control how local virtual assets service providers operate.
Meanwhile, President Nayib Bukele’s support for Bitcoin has not wavered despite the crypto market’s continued dip. Last week, he said that El Salvador would buy one Bitcoin daily.
Issuing Blockchain Bonds And Utilizing Its Proceeds
Legislation seeking the creation of a crypto commission to regulate the domestic crypto ecosystem was made public by a presidential spokesperson. This legislation aims to establish a legal structure for exchanging digital assets used in public issuances in El Salvador.
Also, it aims to control the demands and commitments made by issuers and providers of such assets. Additionally, the government has suggested issuing blockchain bonds.
A $100 minimum investment will be made in blockchain bonds that will be issued. The bill states that the country wants to raise $1 billion through bond sales.
Then, use the raised funds to encourage the development of other crypto enterprises. Furthermore, the country has set aside plans on how it will utilize the $1 billion that will be raised.
At first, it planned on using $500 million to finance the infrastructural development of its coastal Bitcoin City. This city will employ geothermal energy from a volcano to mine BTC.
The government intends to purchase Bitcoin with the remaining $500 million.
Meanwhile, on a macroeconomic level, it has also started amassing more of the leading digital currency. By the middle of November, it had spent roughly a sum of $40 million on the purchase of 2,381 BTC.
Recently, the El Salvador President tweeted that the Salvadoran government will restart its expensive series of purchases, purchasing one bitcoin per day. The disclosure sparked some excitement in the crypto world, with leading crypto leaders supporting the action.
Recent reports suggested El Salvador may have stored its BTC holdings on the collapsed crypto exchange, FTX. However, President Bukele shut off such statements, claiming that his country has never done any business with Sam Bankman-Fried’s crypto platform.
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