Connect with us

Bitcoin City

El Salvador Approves Digital Assets Issuance Law

Published

on

El Salvador Approves Digital Assets Issuance Law

The Legislative Assembly of El Salvador approved the Digital Assets Issuance Law, a framework that will allow the country to issue crypto-related debt instruments. The approved law, which was passed thanks to the majority that President Nayib Bukele has in Congress, serves as a base for the issuance of the long-expected volcano bonds.

El Salvador Passes Digital Bond Law

El Salvador has taken another step in the way of integrating blockchain technology with the financial operations of the state. The Legislative Assembly finally passed the Digital Assets Issuance Law, which establishes the rules for the state to open cryptocurrency-related public offers.

The law, which was passed with a majority due to the support of Nayib Bukele’s party, has the objective “to establish the legal framework that grants legal certainty to transfer operations to any title of digital assets that are used in the issuance of public offerings carried out in El Salvador.”

Advertisement

The document also creates the bitcoin funds managing agency, an autonomous institution that will manage the funds the state will obtain with the issuance of cryptocurrency-based bonds, and will have a direct relationship with the Treasury of El Salvador.

Implications and Further Developments

The approval of this law, which was introduced in November, comes to serve as a base for the issuance of the long-announced volcano bonds, a set of debt instruments that will partially be used to fund the construction of the country’s Bitcoin City. The city, which would be tax-free and carbon-neutral, would be built with $1 billion coming from these bonds, and powered by geothermal energy.

The volcano bonds were projected to be issued by El Salvador last year, but the government repeatedly delayed issuance due to the conditions of the cryptocurrency market and the rise of the Ukraine-Russia conflict, according to statements made by Alejandro Zelaya, the Treasury Minister of the country.

However, not all deputies supported this law, as some expressed their dissatisfaction with the way in which it passed. Johnny Wright, part of the opposition coalition, stated:

El Salvador is creating ideal conditions for money laundering, an ecosystem that facilitates money laundering and tax evasion.

Furthermore, deputy Claudia Ortiz criticizes that this law opens the door for Bukele’s government to issue bonds without any control. Even so, there is still no date set for the issuance of the volcano bonds.

Advertisement
Tags in this story

What do you think about the approval of the Digital Assets Issuance Law in El Salvador? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Advertisement

2022

Reviewing El Salvador’s Bukele Predictions For 2022: What Went Wrong?

Published

on

Reviewing El Salvador’s Bukele Predictions For 2022: What Went Wrong?

Nayib Bukele, president of El Salvador and die-hard Bitcoin enthusiast, formulated a series of predictions about the behavior of bitcoin and the crypto ecosystem for the past year. These included the top price of bitcoin, the influence of the cryptocurrency on U.S. elections, the issuance of the volcano bonds, and also the construction of Bitcoin City. However, he missed the mark on most of them.

Bukele’s Predictions for 2022

The president of El Salvador, Nayib Bukele, one of the biggest promotors of bitcoin in Latam, and the man behind the adoption of bitcoin as legal tender in his country, made a series of predictions about the cryptocurrency world and its movements for 2022. The predictions touched on issues like bitcoin pricing, the influence of bitcoin on politics, and also the development of several El Salvador-specific developments related to Bitcoin.

The first prediction, revealed in a tweet on Jan. 1, 2022, had to do with the price that bitcoin would reach, calculated by Bukele to be around $100,000. This did not become true, as the maximum price that BTC reached was around $47,500.

Advertisement

The second of Bukele’s predictions stated that two more countries would adopt bitcoin as legal tender. This also failed to become reality. However, St. Kitts and Nevis did announce it would be exploring the possibility of making bitcoin cash (BCH) legal tender by March 2023, “once the safeguards to our country and our people are guaranteed,” as Prime Minister Terrance Drew stated on Nov. 12.

Another prediction was that bitcoin would “become a major electoral issue in U.S. elections this year.” While bitcoin-related issues have been part of the political and regulatory landscape of the U.S. during 2022, more with the demise of FTX during these last two months, this prediction also missed its mark by quite a bit.

El Salvador-Specific Predictions

The second half of the predictions made by Bukele had to do more with Salvador-specific issues, including the status of the volcano bonds, which would be issued by the government to finance the construction of Bitcoin City, and also with the construction of the city itself.

The fourth prediction that Bukele stated was that the construction of the Bitcoin City, the geothermal-powered, bitcoin mining-friendly city, would start last year. However, this also failed to happen, with one of the last statements related to its construction happening on Jan. 9, 2022, when Bukele explained they were drilling more geothermal wells to secure the energy needed to run the city.

This also has to do with his fifth prediction, which explained that the volcano bonds would be oversubscribed. However, the issuance of volcano bonds did not occur in 2022, with Treasury Minister Alejandro Zelaya blaming the postponements of the issuance on the Russia-Ukraine conflict and the fall of the cryptocurrency market. In September, Bitfinex CTO Paolo Ardoino also stated that these bonds would be further delayed because the laws supporting the issuance were still not ready

Advertisement

Its sixth and final prediction stated a surprise to be revealed at The Bitcoin Conference, which was held in April in Miami. However, Bukele was not able to appear in the event, as El Salvador faced an onslaught of gang violence that started in March, with a response from the government qualified as “cruel and inhuman” by the United Nations.

Tags in this story

2022, Bitcoin City, Bitcoin conference, Bitcoin Price, El Salvador, ftx, gang violence, geothermal energy, legal tender, Nayib Bukele, Predictions, preditions, volcano bonds

What do you think about the predictions of Nayib Bukele, president of El Salvador, for 2022? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Advertisement

Continue Reading

alejandro zelaya

Bitfinex CTO Paolo Ardoino States Salvadoran Bitcoin Bonds To Be Further Delayed

Published

on

Bitfinex CTO Paolo Ardoino States Salvadoran Bitcoin Bonds To Be Further Delayed

The launch of El Salvador’s bitcoin bonds, issued to finance part of the construction of the Bitcoin City in the country, will be delayed again. In a recent interview Paolo Ardoino, CTO at Bitfinex, the exchange in which these bonds will be offered, stated that the law framework needed for the issuance of these digital securities is still not ready.

El Salvador to Delay Bitcoin Bonds Launch

The launch of the iconic bitcoin bonds of El Salvador, which will serve to fund the construction of the Bitcoin City announced last year, will be further delayed, according to reports coming from Paolo Ardoino, CTO at Bitfinex. In a recent interview offered to Fortune, Ardoino stated that the law framework that would support this issuance was still not ready.

However, Ardoino made a prediction on the launch date of the bonds. He declared:

Advertisement

If the law passes by September, I would expect it to reasonably take two to three months to have everything else rolled out.

The bond token was reported to be issued first in the Bitfinex exchange, using the Liquid network, managed by Blockstream, as the platform for its distribution.

Volcano Bonds’ Background

The bitcoin bonds, dubbed volcano bonds due to the geothermal energy that will be used to power mining operations in the Bitcoin City, were first announced in November 2021. President Nayib Bukele aimed to raise $1 billion with this instrument. The launch of the bonds was predicted to happen after 60 days after this announcement.

However, the bond launch was delayed. The Salvadoran Congress drafted 20 bills in order to support the launch of these digital securities in January. Later, in May, treasury minister Alejandro Zelaya informed the launch of the bonds was on hold due to the market conditions and the situation of the war in Europe, hinting at a possible launch in May or June.

In an interview in June, Zelaya clarified that it was not feasible to launch the bonds then due to several factors, including the Russian-Ukrainian conflict. At the time, he explained that many investors interested in cryptocurrency instruments pivoted to investments related to the arms industry.

The government of El Salvador has been heavily criticized for the losses caused by the investments President Nayib Bukele has done, buying the bitcoin “dip” several times.

Advertisement
Tags in this story

alejandro zelaya, arms investments, bitcoin bonds, Bitcoin City, BitFinex, Blockstream, El Salvador, liquid network, Nayib Bukele, Russia, Ukraine, volcano bonds

What do you think about the latest delay in the launch of the Salvadoran Bitcoin bonds? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Advertisement

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Continue Reading

Bitcoin City

What If We Have A Bitcoin City In El Salvador But No Bitcoin?

Published

on

By

What If We Have A Bitcoin City In El Salvador But No Bitcoin?

The president of El Salvador, Nayib Bukele, presented on Tuesday the first images of Bitcoin City

El Salvador President Nayib Bukele has revealed a model of his planned Bitcoin City. More of a cryptocurrency trading hub than an actual city, the Bitcoin City will be powered by volcanic geothermal energy and promises an array of tax exemptions to attract foreign investors. Bitcoin City will also have residential areas, malls, and even a port to make it feel like a residential zone. One of the few countries to have adopted Bitcoin as a legal tender, El Salvador aims to be a trendsetter when it comes to cryptocurrency adoption and usage. In the midst of a major sell-off on the cryptocurrency market this week, the country added 500 Bitcoin to its Bitcoin reserves.

On May 10, Bukele took to Twitter to share images of a scale model for his Bitcoin City. Bukele also tweeted that “El Salvador just bought the dip,” adding 500 more Bitcoins to its treasury. Bitcoin prices took a major plunge on May 10, dropping below US$30,000 for the first time since July 2021. For a crypto-forward leader like Bukele, it made sense to buy the dip when the prices are low. But there is a very important question that needs to be answered: what will happen to the Bitcoin City in El Salvador when there will be no Bitcoin?

Looking at the current scenario and the performance of crypto king it can be said that there is a possibility in the near future when Bitcoin will no longer exist. Not just that but given the volatility of bitcoin and its low adoption among the general population, recently, the International Monetary Fund (IMF) has urged El Salvador to remove bitcoin as a legal currency. Bukele’s insistence on keeping it as legal tender complicated his negotiations with the IMF, which said it must assess the risk of the cryptocurrency before granting El Salvador a loan.

 

Advertisement
More Trending Stories 

Will Shiba Inu Follow Terra’s Suit and Head Towards a 99% Fall?

Google is Filthy Rich to Spend its Money on Irrelevant Products

If the Third World War Happens in Metaverse, will People be Hurt?

Psychographics in AI can Bring out 100% Accurate Business Insights

Data Science is Judging and Mocking you for Having a Bad Love Life

Advertisement

Mitigating Wage Inflation Issues with Intelligent Automation

The post What if We Have a Bitcoin City in El Salvador but No Bitcoin? appeared first on .

Advertisement
Continue Reading

Top posts

Arbitrum-Based Vest Exchange Emerges, Aims To Democratize Perpetual Futures  Arbitrum-Based Vest Exchange Emerges, Aims To Democratize Perpetual Futures 
$1.25 billion6 hours ago

Arbitrum-Based Vest Exchange Emerges, Aims To Democratize Perpetual Futures 

A new decentralized exchange (dex) on Arbitrum, called Vest Exchange, was announced this past weekend, and the team that created...

Best Options this Week Best Options this Week
Uncategorized8 hours ago

Best Options this Week

Looking for the best options this week? The government and the Federal Reserve have created plenty of volatility for options...

Litecoin breaks above its realized price after almost a year Litecoin breaks above its realized price after almost a year
litecoin8 hours ago

Litecoin breaks above its realized price after almost a year

Got a story tip? Email [email protected] Disclaimer: By using this website, you agree to our Terms and Conditions and Privacy...

SBF tried to meet FTX replacement CEO John Ray SBF tried to meet FTX replacement CEO John Ray
Bankruptcy8 hours ago

SBF tried to meet FTX replacement CEO John Ray

SBF tried to meet FTX replacement CEO John Ray Mike Dalton · 4 seconds ago · 2 min read Sam...

Bitcoin liquidations in last 24 hours top $160M Bitcoin liquidations in last 24 hours top $160M
Analysis9 hours ago

Bitcoin liquidations in last 24 hours top $160M

Bitcoin liquidations in last 24 hours top $160M Zeynep Geylan · 25 mins ago · 1 min read Data shows...

Polkadot [DOT] dropped to a key support zone; can bulls prevail? Polkadot [DOT] dropped to a key support zone; can bulls prevail?
altcoin9 hours ago

Polkadot [DOT] dropped to a key support zone; can bulls prevail?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s...

BlockFi permitted to auction mining equipment BlockFi permitted to auction mining equipment
Bankruptcy10 hours ago

BlockFi permitted to auction mining equipment

BlockFi permitted to auction mining equipment Mike Dalton · 2 hours ago · 1 min read Courts have determined that...

Why Solana’s [SOL] recent gains might be undercut by this metric’s findings Why Solana’s [SOL] recent gains might be undercut by this metric’s findings
altcoin10 hours ago

Why Solana’s [SOL] recent gains might be undercut by this metric’s findings

‘Overvalued’ Solana’s indicators seemed to indicate the arrival of market bears  On the contrary, SOL’s demand across the derivatives market...

Twitter moving ahead with payment processing service; crypto integration may come later Twitter moving ahead with payment processing service; crypto integration may come later
Technology10 hours ago

Twitter moving ahead with payment processing service; crypto integration may come later

Twitter moving ahead with payment processing service; crypto integration may come later Dorian Batycka · 42 mins ago · 1...

Stablecoin withdrawals from exchanges reach $800M on Jan. 30 Stablecoin withdrawals from exchanges reach $800M on Jan. 30
Stablecoin11 hours ago

Stablecoin withdrawals from exchanges reach $800M on Jan. 30

Got a story tip? Email [email protected] Disclaimer: By using this website, you agree to our Terms and Conditions and Privacy...

Bitcoin Rise In First Month Of 2023 Moves Crypto Fear Index From ‘Extreme Fear’ To ‘Greed’ Bitcoin Rise In First Month Of 2023 Moves Crypto Fear Index From ‘Extreme Fear’ To ‘Greed’
24 hours12 hours ago

Bitcoin Rise In First Month Of 2023 Moves Crypto Fear Index From ‘Extreme Fear’ To ‘Greed’

Last month, statistics showed that the Crypto Fear and Greed Index (CFGI) had a score of 25, indicating “extreme fear.”...

Unbanked And Mastercard Team Up To Accelerate Crypto Card Adoption Within Web3 Organizations In Europe Unbanked And Mastercard Team Up To Accelerate Crypto Card Adoption Within Web3 Organizations In Europe
litecoin13 hours ago

Unbanked And Mastercard Team Up To Accelerate Crypto Card Adoption Within Web3 Organizations In Europe

press release PRESS RELEASE. Today it was announced that Unbanked, the leading provider of white-label crypto card issuance and program...

Twitter: Elon Musk reportedly plans to build crypto functionality to payments service Twitter: Elon Musk reportedly plans to build crypto functionality to payments service
altcoin13 hours ago

Twitter: Elon Musk reportedly plans to build crypto functionality to payments service

Elon Musk’s Twitter plans on bringing payment services that could add support to crypto Dogecoin registered a rise in its...

Top 10 Data Science Programming Languages You Should Know In 2023 Top 10 Data Science Programming Languages You Should Know In 2023
Data Science13 hours ago

Top 10 Data Science Programming Languages You Should Know In 2023

The Top 10 data science programming languages you should know in 2023 Data science has become an increasingly popular field...

ChatGPT For Writing Marketing Emails ChatGPT For Writing Marketing Emails
ChatGPT13 hours ago

ChatGPT For Writing Marketing Emails

ChatGPT for writing marketing emails is one of the biggest benefits of email marketing it assists businesses to increase user...

Crypto Market Turns Red – Here Are The Key Events To Watch This Week Crypto Market Turns Red – Here Are The Key Events To Watch This Week
Bitcoin Price13 hours ago

Crypto Market Turns Red – Here Are The Key Events To Watch This Week

The crypto market started the year on a positive note where most of the cryptocurrencies doubled their value. Since the...

Biggest Movers: MATIC Retreats From 12-Week High On Monday Biggest Movers: MATIC Retreats From 12-Week High On Monday
Analysis14 hours ago

Biggest Movers: MATIC Retreats From 12-Week High On Monday

Polygon retreated from a multi-month high to start the week, as traders moved in to secure recent gains. Chainlink also...

What Is WEB3? What All You Need To Know About WEB3 Technology? What Is WEB3? What All You Need To Know About WEB3 Technology?
Latest News14 hours ago

What Is WEB3? What All You Need To Know About WEB3 Technology?

What is web3? What do you need to know about web3 technology? Its features and layers Web 3 or Web...

Trending