A new bill brings El Salvador closer to issuing the first Bitcoin Bond, also called the Volcano Bond, which will finance the construction of Bitcoin City.
El Salvador is on the verge of issuing its first Bitcoin Bond, announced by the country's president, Nayib Bukele, last year during the Latin American Bitcoin & Blockchain conference (LABITCONF).
Bitcoin Magazine reported that El Salvador's economy minister, María Luisa Hayem, recently presented to the National Assembly a Bill focused on the issuance of digital assets, which brings El Salvador closer to issuing its first Bitcoin Bond. It should be noted that, if approved, this new bill will allow the Salvadoran nation to issue its $1.000 billion Bitcoin Bond, thus representing an important milestone for the country's plans.
VanEck strategy advisor Gabor Gurbacs commented on his Twitter account that the Volcano Bond is happening. “The people of El Salvador inspire me,” Gurbacs said.
The Bitcoin Bond was originally scheduled to be launched at the beginning of this year. However, its issuance has been delayed several times due to the bearish cryptocurrency market and the overall macroeconomic situation.
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Bitcoin City will be funded by the Bitcoin Bond
When Bukele attended LABITCONF 2021, he highlighted that The country would build its own Bitcoin city, called “Bitcoin City”, to accelerate its economic growth and development, boost hyperbitcoinization and position Bitcoin at the center of the new monetary system.
The construction of this city, which will be powered by geothermal energy, will be financed through the so-called Bitcoin Bond, an initiative designed to attract new investments and foreign capital. President Nayib Bukele reported last year that $500 million dollars of the Bitcoin Bond will be allocated to the construction of the city.
Bitcoin City will be built in the coastal town of Conchagua and will be powered by geothermal energy produced by the volcano of the same name.
Source: Twitter of President Nayib Bukele
El Salvador's plans to issue the $1.000 billion Bitcoin Bond will also help the country strengthen and expand its crypto mining infrastructure and broaden its investment in BTC. Currently, El Salvador is estimated to own over 2.300 BTC, and the nation's president has pledged this month to acquire 1 BTC every day, to strengthen its BTC accumulation strategy, taking advantage of low cryptocurrency prices.
In recent months, Bukele had allocated the profits generated by the investment in bitcoins to finance public works, such as the Construction of a veterinary hospital which was inaugurated in February.
Continue reading: Bitcoin boosts international tourism in El Salvador, according to Nayib Bukele
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