Menu
  • Latest
  • Prices
  • NFT
  • Coins
    • Bitcoin
    • Ethereum
    • Cardano
    • Ripple
    • Solana
    • Shiba inu
    • Dogecoin
    • Algorand
    • Litecoin
  • GEO
    • Ukraine
    • China
    • India
    • South Korea
    • North Korea
    • El Salvador
    • Switzerland
    • Nigeria
    • Russia
    • Latin America
  • Wiki
Language:

Coin Prologue
  • Latest
  • Prices
  • NFT
  • Coins
    • Bitcoin
    • Ethereum
    • Cardano
    • Ripple
    • Solana
    • Shiba inu
    • Dogecoin
    • Algorand
    • Litecoin
  • GEO
    • Ukraine
    • China
    • India
    • South Korea
    • North Korea
    • El Salvador
    • Switzerland
    • Nigeria
    • Russia
    • Latin America
  • Wiki
  • News

El Salvador Approves Digital Assets Issuance Law

  • Ralph Smith
  • 14/01/2023
  • 2 minute read
Total
0
Shares
0
0
0
0
0
0

el salvador digital assets issuance law volcano bonds

El Salvador’s Legislative Assembly has approved a digital asset issuance law, a framework that will allow the country to issue crypto-related debt instruments. The approved law, passed thanks to the majority President Nayib Bukele has in Congress, will serve as the basis for the long-anticipated issuance of volcanic bonds.

El Salvador Passes Digital Bond Law

El Salvador has taken another step forward in the way it integrates blockchain technology into the nation’s financial operations. The Legislative Assembly finally passed the Digital Asset Issuance Law, which sets rules for the state to conduct cryptocurrency-related public offerings.

The law, passed by a majority with the support of the political party of Nayib Bukele, has the objective of “establishing a legal framework that grants legal certainty to any transfer operation to any title of digital assets used to issue public offerings conducted in El Salvador.”

The document also creates the Bitcoin Funds Management Agency, an autonomous body that will manage the funds acquired by the State in the issuance of cryptocurrency-based bonds and will have a direct relationship with the Ministry of Finance of El Salvador.

Implications and Further Developments

The approval of this law, introduced in November, has come to serve as the basis for the issuance of the long-announced Volcano Bonds, a series of debt documents that will be used in part to build the country’s Bitcoin City. The tax-exempt, carbon-neutral city will be built with $1 billion from the bonds and will be powered by geothermal energy.

The volcano bond was expected to be issued by El Salvador last year, but the government has repeatedly postponed the issue due to the state of the cryptocurrency market and the outbreak of the Ukrainian-Russian conflict, according to statements by the country’s Finance Minister Alejandro Zelaya.

However, not all lawmakers support the law, as some have expressed dissatisfaction with the way it was passed. Johnny Wright, part of the opposition coalition, said,:

El Salvador creates ideal conditions for money laundering, an ecosystem that facilitates money laundering and tax evasion.

In addition, deputy Claudia Ortiz criticized the law as paving the way for the Buquere administration to issue bonds without any control. Nevertheless, a date for the issuance of the Volcano bonds has not yet been set.

Image Credit: Shutterstock, Pixabay, Wiki Commons

Country: El Salvador / Russia
Ralph Smith

Cryptocurrency geek. Met with Bitcoin and altcoins back in 2011, when the price of BTC was about 10$. Writing articles since 2014 to these days.

You May Also Like
View Post
  • 1
  • 2 min

Report: Korean Central Bank to Gain Right to Probe Virtual Asset Entities After Financial Regulator Drops Opposition

View Post
  • 3
  • 2 min

Financial Analyst Charles Nenner Warns About the End of the US Dollar and Its Consequences

View Post
  • 2 min

Global Reserves Held in US Dollars Fell to Less Than 50% — Official States It Has Become a ‘Toxic’ Currency

View Post
  • 2 min

White House Economist Warns China Wants to Weaken US Dollar’s Reserve Currency Status — Senator Says Biggest Threat Comes From Within

View Post
  • 2 min

Putin and Saudi Crown Prince Discuss Potential BRICS-Saudi Arabia Collaboration

View Post
  • 2 min

Wallet Bot on Telegram Adds Bitcoin Support to Web Interface Following Tether Integration 

Recent Posts
  • Report: Korean Central Bank to Gain Right to Probe Virtual Asset Entities After Financial Regulator Drops Opposition

    View Post
  • Financial Analyst Charles Nenner Warns About the End of the US Dollar and Its Consequences

    View Post
  • Global Reserves Held in US Dollars Fell to Less Than 50% — Official States It Has Become a ‘Toxic’ Currency

    View Post
  • White House Economist Warns China Wants to Weaken US Dollar’s Reserve Currency Status — Senator Says Biggest Threat Comes From Within

    View Post
Coin Prologue Coin Prologue
Made with ❤️Love in 🇺🇦Ukraine ©2021 — 2022

Input your search keywords and press Enter.