The Legislative arm of the El Salvadorian government has passed a bill into law that allows the pro-Bitcoin nation to create bitcoin-backed bonds – Volcano bonds. “Volcano bonds” have been a long-time vision for development around bitcoin and got its name from the idea of using the energy from the frequent volcanic eruption in the country to mine bitcoin.
— Asamblea Legislativa 🇸🇻 (@AsambleaSV) January 11, 2023
It can be recalled that in 2021, the Bukele-led government announced plans to raise $1 billion worth of bonds developed on bitcoin which was already a legal tender in the nation at that time.
To further reiterate the bitcoin bond, the Volcano Bonds document was released as the roadmap towards the actualization of the bonds which stipulated that the funds will be used to build a Bitcoin mining economy using renewable energy, and other national projects.
After months of delay from March 2022, the proposed date of the issuance of the bond, the bill was heard in the Legislative Assembly last November and has been passed into law following the support of sixty-two legislators against sixteen officials who opposed the development.
“Today El Salvador builds on our first-mover advantage by passing landmark legislation establishing a legal framework for all digital assets that are not bitcoin,” the National Bitcoin Office (ONBTC) of El Salvador said.
We are getting started – National Bitcoin Office
Commenting on the development, the nation’s Bitcoin Office explained that when the bitcoin bonds are issued, El Salvador will again lead the way toward a monetary revolution in the world. The law will allow El Salvador to offer better consumer protection against bad actors in the ‘crypto’ space while attracting those who want to transparently build and develop on Bitcoin, ONBTC said.
In addition, the law will allow the creation of the National Digital Assets Commission which will help regulate the entire digital asset industry in El Salvador which includes purchasers and issuers. “We want the world to know that we are just getting started,” ONBTC noted.