The government of El Salvador’s President Nayib Bukele presented to Congress a proposal for a law on digital assets that will facilitate the issuance of $1B in cryptobonds. The “Law of Issuance of Digital Assets” was submitted by El Salvador’s Minister of Economy María Luisa Hayem.
The proposed law states that “it is crucial to create mechanisms that allow public and private sector entities to carry out public offerings of digital assets.” The law also establishes the creation of a National Commission for Digital Assets. This institution would be in charge of implementing the regulations and developing the digital asset market in the country.
In June 2021, El Salvador became the first country to adopt Bitcoin as a national currency. In November 2021, Bukele announced plans to construct a Bitcoin City, which would be financed with the issuance of $1B of cryptobonds, also known by the government as “volcano bonds.”
So far, Bukele’s government has purchased 2,381 bitcoins, allocating $107M of public funds to these operations. Last week, Bukele also announced that the government will buy a bitcoin every day.
According to a survey by the Universidad Centroamericana José Simeón Cañas, 65.5% of El Salvador’s population believes that bitcoin has failed as a legal tender. Also, 7 out of 10 Salvadorans believe that the deputies of the Legislative Assembly should derogate the Bitcoin Law that is currently in force.
Read more in La Nación.