{"id":480491,"date":"2022-01-06T09:51:50","date_gmt":"2022-01-06T09:51:50","guid":{"rendered":"https:\/\/ktsl888.com\/?p=480491"},"modified":"2024-06-11T14:10:26","modified_gmt":"2024-06-11T14:10:26","slug":"el-salvador-prepares-regulatory-framework-to-issue-controversial-bitcoin-bonds","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/el-salvador-prepares-regulatory-framework-to-issue-controversial-bitcoin-bonds\/","title":{"rendered":"El Salvador Prepares Regulatory Framework To Issue Controversial Bitcoin Bonds"},"content":{"rendered":"

Will the plan work? Soon, the Bitcoin Bonds will get the legal foundation they need. In a recent TV interview Alejandro Zelaya, El Salvador\u2019s Finance Minister, said they will send the necessary bills to Congress. Soon. Reportedly, El Salvador will initially issue $1B worth of bonds, which will have a ten-year maturity and carry a 6.5% coupon. The bitcoin that backs them will be locked for five years.<\/span><\/p>\n

The project, announced by President Bukele at Labitconf 2021, includes plans to build Bitcoin City. More on that later. In a scheme worthy of MicroStrategy, El Salvador will spend half of the money on the construction of Bitcoin City and will buy Bitcoin with the other half. Will the plan work? Well, they have to sell the bonds first. And for those to exist, a regulatory framework is required.<\/span><\/p>\n

\"BTCUSD<\/p>\n

BTC price chart for 01\/06\/2021 on OkCoin | Source: BTC\/USD on TradingView.com<\/a><\/pre>\n
What Did El Salvador\u2019s Finance Minister Say About The Bitcoin Bonds?<\/span><\/h2>\n
In an interview in the local TV show \u201cFrente a Frente,\u201d Zelaya announced the plan\u2019s following steps. <\/span>Reuters<\/span><\/a> reports:<\/span><\/p>\n
\u201cEl Salvador’s government will send to Congress about twenty bills covering financial markets and investment in securities to provide a legal foundation for issuing bitcoin bonds, Finance Minister Alejandro Zelaya said on Tuesday.\u201d<\/span><\/p><\/blockquote>\n
The Finance Minister didn\u2019t specify exactly when they will introduce the bills. According to <\/span>El Salvador In English<\/span><\/a>, Zelaya said, \u201cThis type of legislation is what we are going to send to the Legislative Assembly to be able to give legal scaffolding and legal certainty to all those who buy the Bitcoin bond.\u201d<\/span><\/p>\n
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"El Salvador podr\u00eda convertirse en un centro regional donde los dem\u00e1s pa\u00edses puedan emitir deuda, contamos con grandes ventajas como tener una econom\u00eda dolarizada y ser de punta de lanza en materia cripto", expresa el Ministro @AlejandroZelay9<\/a> en @Frentea_Frente<\/a>. pic.twitter.com\/uHbEzx4A3c<\/a><\/p>\n
— Ministerio de Hacienda (@HaciendaSV) January 4, 2022<\/a><\/p><\/blockquote>\n