The Legislative Assembly of El Salvador has approved a law on the issuance of new digital assets.
Nayib Bukele, a renowned Bitcoin maximalist and the president of El Salvador, has announced the news on Twitter about his country approving the new legislation.
The bill, among other things, lays the legal foundation for the issuance of "volcano-bonds" - bonds backed by Bitcoins. 62 of the 78 members of the Legislative Assembly voted in favor of it.
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The unusual name for the bonds is no accident. In the summer of 2021, El Salvador announced plans to begin mining Bitcoin using volcanic energy.
The environmentally friendly source will help reduce the costs associated with BTC mining. And additionally, it will attract new miners.
El Salvador will issue Bitcoin-denominated government bonds to invest in the project. These are the "volcano-bonds". The country plans to raise $1 billion from them.
The infrastructure provider for the "volcano-bonds" will be Bitfinex, which is also an exchange. It will issue a token linked to the bonds and service all transactions.
El Salvador, a country with a population of 6.3 million, continues showing resilience at their pursuit of becoming a global leader at Bitcoin adoption.
In September 2021, El Salvador became the first country in the world to adopt Bitcoin as legal tender, thus making all the businesses in the country to accept the digital asset if the customer was willing to pay with it.
In July 2022, El Salvador once again ventured deeper into becoming a Bitcoin maximalist country by taking advantage of the bear market and buying 80 BTC at the price of $19K.