The El Salvador House of Representatives was given a 33-page legislation dealing with digital stocks on November 17 with a request that they establish a legislative structure allowing the nation to utilize digital assets in its public offerings. The financial system was first opened to volcano bonds, often referred to as Bitcoin bonds, by the administration of Nayib Bukele, who presided over the country from 2021 to 2022.
The financial system was initially introduced to volcano bonds, often referred to as Bitcoin bonds, by the administration of Nayib Bukele, who presided over the country from 2021 to 2022.
The original plan planned for the issuance of bonds with a face value of about $1 billion, with the money raised going towards the construction of a “Bitcoin City” at the foot of the Colchagua volcano. After it was discovered that the sale of the notes just wouldn't generate a profit, this iteration of the plan was abandoned.
Given that the city would be located close to the volcano, it is thought that the hydrothermal energy produced by the volcano will make the place ideal for a plant for mining cryptocurrencies. If this plan were to be approved, Bitcoin would receive a direct investment equivalent to 50% of the entire money generated.
Over the duration of the last year and a half, delays have continuously plagued the project. The project's debut phase, which was previously slated to begin at the beginning of March, was first pushed until September and then again for “security reasons,” according to two separate postponements.
Several sources have suggested that the idea might be passed by the parliament before the winter holidays.
On September 7, 2021, Bitcoin was officially accepted as legal tender, and El Salvador received more than 2,301 BTC as payment. This amount is about equivalent to $103.9 million. The profits from the transaction were also used to help fund the construction of medical facilities and educational institutions during the period when the share market was booming.
Despite this, 77.1% of El Salvadorans think the government should stop “spending public money on Bitcoin,” particularly in light of the nation's continuing economic downturn.
As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!
iOS: t.ly/UUCj
Android: t.ly/cfYt