El Salvador Passes Historic Crypto Bill, Enables BTC-Backed Bonds

El Salvador has made a step forward by adopting its digital securities bill. This will enable it to issue Bitcoin bonds.

On January 11, El Salvador's parliamentary assembly approved a digital securities bill. The bill allows the country to issue Bitcoin-based bonds. In November, the bill was initially introduced in parliament.

The digital securities bill will create a legal framework for digital assets. This will provide legal certainty to transfer operations involving any title of digital assets utilized in El Salvador.

As per local media reports, the major goal of the bill is to make the issuance of volcanic bonds more possible. Those who opposed the bill claimed that it did not address the public's concerns.

Among other things, the bill calls for the establishment of a national digital assets commission, which will work as a crypto regulatory authority. The bill's most significant feature is the creation of a Bitcoin Fund Administration Agency. 

El Salvador's BTC Bond Experiment

El Salvador has been in the news a lot since it changed to Bitcoin. It has not always been great, particularly for President Nayib Bukele, but it has certainly sparked a lot of interest.

On the bright side, billionaire Tim Draper has stated that the country's Bitcoin investments will make it one of the richest in the world. In contrast, according to reports last year, the majority of El Salvadorans had left their Chivo Bitcoin wallets.

The country has also pushed for Bitcoin education, educating students on how Bitcoin works. Bukele has vowed to keep buying BTC, which could go either way for the country.

President Bukele Remains Strong on BTC Position

Bukele is so confident in Bitcoin that he intends to acquire one BTC every day, rejecting any media criticism. He criticized a Bloomberg report calling his Bitcoin experiment a failure "full of lies."

Despite the fact that the country has been facing instability in recent months, Bukele's approval rating remains quite high. In any case, he does not appear to be affected by his financial experiments, and the country will continue to defy common wisdom.

Also read: Five UK Organizations Form Crypto Coalition to Promote Digital Asset Regulation