By FintechNews staff
After announcing Bitcoin Bonds last November, El Salvador’s government will now send to congress the legal framework for its issuance.
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.
One of the flagship projects that will be financed with these bonds is Bitcoin City. The construction of the first city in the world whose construction and economy will be based entirely on the largest cryptocurrency, will cost about 300,000 bitcoins.
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. The bond will pay a 6.5% yield and enable fast-tracked citizenship for investors.
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.
