Is El Salvador Crypto Bill Going To Unleash the Potential for Bitcoin-Backed Bonds?
El Salvador keeps making its move to embrace the power of bitcoin after becoming the world's first country to recognize Bitcoin as a legal tender. Recently the Legislative Assembly of El Salvador provides a legal framework to issue bitcoin-backed bonds. It is also known as Volcano Bond.
El Salvador President Nayib Bukele made a plan to raise $1 billion via bitcoin-backed bonds in November 2021. The crypto market started going down and maintained its downward trend in 2022. A lot of things happened so far in the crypto market.
People were excited about what would happen when the crypto bill approves and bitcoin-backed bonds come into reality. Although there were plans for insurance of bitcoin-backed bonds, it was postponed. Finally, the digital assets bill was introduced in the Legislative Assembly where 62 legislators voted in favor of the bill, and 16 legislators voted against bill.
The fund raising from bitcoin-backed bonds or Volcano Bonds can be used for the construction of the Bitcoin City, paying sovereign debt, and development of mining infrastructure relying on renewable energy including using volcanos. This is a great initiative. Some critics criticize Bitcoin for burning energy while the initiative of using renewable energy is inspiring.
It can set an example of how Bitcoin can help the development of a country and strengthen the financial system. El Salvador is moving forward with its initiative in spite of backlash from the IMF. When it seems there are no alternatives to the existing financial system and how it operates, Bitcoin shows there are alternatives.
We are going to see more innovation and development in this industry. When you first got into crypto, you might not have thought about what could be possible. Now looking at crypto, you see what is going to happen next and how people will embrace crypto in their life. Technology will move forward with its speed whether some critics like it or not.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
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