El Salvador Takes First Step To Issue Bitcoin Volcano Bonds

A digital securities bill has been presented to El Salvador’s Congress, paving the way for the issuance of bitcoin-backed bonds.Author:NamciosPublish date:Nov 22, 2022A digital securities bill has been presented to El Salvador’s Congress, paving the way for the issuance of bitcoin-backed bonds.El Salvador’s Minister of the Economy Maria Luisa Hayem Brev? The country’s legislative assembly has been presented with a bill on digital assets issuance. This bill will allow for the launch of its bitcoin-backed “volcano” bonds. First announced one year ago today. It was revealed that plans were made to issue $1 billion of bonds on the Liquid Network. This federated Bitcoin sidechain allows tokens from one blockchain to be used in a sidechain. However, the sidechain must adhere to a different set rules, performance requirements, security mechanisms, and rules. Liquid, a sidechain of Bitcoin, allows bitcoin to flow between the Liquid network and the Bitcoin network with a two-way Peg. L-BTC is the name of a representation of bitcoin that is used in the Liquid network. Its verifiably equal amount of BTC is managed by the network’s members, known as functionaries. Paolo Ardoino (CTO of cryptocurrency exchange Bitfinex) tweeted that “Digital securities law” will allow El Salvador to become the financial center for central and southern America. Bitfinex will be granted a license to process and list bond issuances in El Salvador. The bonds will yield 6.5% and allow investors to become citizens quickly. After the original $500 million has been monetized, the government will share half of the additional gains with investors in the form of a Bitcoin Dividend. Blockstream’s asset management platform will distribute the dividends annually. According to a source close, President Nayib Bukele, the next step is to get it approved. This is expected to occur before Christmas. The bill was submitted today, November 17, and presented to Congress today. It is embedded in full below.Tagsterms:lawBillBitcoin BondPresident Bukeleel salvador

 

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