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El Salvador Congress Approves Digital Securities Bill to Raise Funds for Bitcoin City | Cryptocurrency

  • El Salvador is raising $500 million through the world’s first blockchain-based sovereign bond to build Bitcoin City.
  • The city will receive geothermal energy from a nearby volcano for cryptocurrency mining.
  • The country will spend $500 million to buy bitcoin, and any increase in the price of the digital currency will eventually be shared with bond holders.

El Salvador, a country located in Central America, is working to raise funds for the development of a bitcoin city. The country passed a law allowing the issuance of bitcoin bonds, supporting the sale of the first ever sovereign bitcoin bond.

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The Congress of El Salvador approved the Digital Securities Law from 62 to 16

El Salvador, a Central American country on the Pacific Ocean, is working to raise funds to build its Bitcoin City. This makes El Salvador the first country in the world to recognize bitcoin as legal tender two years ago.

The country’s Congress approved a law regulating the issuance of other digital assets by the state and private individuals. The bill was supported by deputies from the ruling party, allies of President Naiba Bukele. Bukele aims to attract domestic and foreign investors by creating new funding opportunities for citizens, businesses and the government of El Salvador.

The Digital Securities Act allows a country to raise funds with the first-ever sovereign bond on a blockchain. Congress approved the bill by a vote of 62 to 16. The 47-article law received 62 votes out of a total of 84 seats, and its purpose is to create a legal framework that provides legal certainty for transfer transactions in any respect of digital assets used in public offerings.

In addition, the law establishes the creation of the National Digital Assets Commission and the Bitcoin Fund Management Agency, which will be responsible for managing, protecting and investing funds from public offerings of digital assets conducted by the government.

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