El Salvador Prepares Legislation To Issue Its First Bitcoin Bond
El Salvador is planning to send 20 bills to Congress to establish a foundation for issuing Bitcoin bonds, including a proposal to grant nationality to Bitcoin holders who settle in the country.
In an interview on a local television station today, El Salvador Finance Minister Alejandro Zelaya announced that they will be sending about twenty bills to congress that will provide legal certainty for their Bitcoin Bond issuance, according to Reuters.
These twenty bills will “provide a legal structure and legal certainty to everyone who buys the bitcoin bond,” Zelaya stated. After President Nayib Bukele announced Bitcoin Bonds this past November, the government began working on creating the legal framework to cover the issuance of securities on Bitcoin and corresponding market regulation.
El Salvador aims to raise $1 billion through the bond issuance where half the funds will go to buying bitcoin and the other half is to be spent on building infrastructure for “Bitcoin City.” This city is aiming to attract investors as the announced plans claims it will have 0% income, capital gains, property, payroll, and municipal taxes, as well as 0% CO2 emissions.
Zelaya further added that the country was proposing a plan to offer benefits to Bitcoin investors who take up residence in El Salvador, including granting them nationality. He said:
“There are Bitcoiners and friends of mine who want Salvadoran nationality and ask me how they can obtain it, but the country’s legislation does not have those benefits.”
He also noted that the United States offers similar incentives to individuals who make investments in the country. He also noted that the laws would relate to the country’s plans to become a debt market center in partnership with the Central American Bank for Economic Integration.
The government is hoping to profit from the funds that will be used to buy BTC, like some of the other purchases they’ve made since adopting a Bitcoin standard.
Recently, President Bukele made a new year’s prediction among which he predicted bitcoin to reach $100,000, and that two additional countries will adopt BTC as legal tender.
