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The bill, which is backed by ruling party lawmakers allied with President Naib Bukele, aims to attract domestic and foreign investors.
El Salvador, the first country in the world to recognize Bitcoin as legal tender two years ago, has approved a law regulating the issuance of other digital assets by both the state and private sector.
The bill, which is backed by ruling party lawmakers allied with President Naib Bukele, aims to attract domestic and foreign investors while creating new financing opportunities for citizens, businesses and governments. increase.
The 47-article law won 62 out of 84 seats in parliament on Wednesday.
According to the law, “the purpose of this law is to establish a legal framework that gives legal certainty to transfer operations to any title of digital assets used in publicly issued offers.”
The law states that public offerings can be made by issuers using their existing digital assets, with the opportunity to create new ones through them.
The law also establishes the creation of the National Commission for Digital Assets and the Bitcoin Monetary Authority, which is responsible for managing, protecting and investing funds from public offerings of digital assets conducted by the government.
The provisions of law do not apply to digital currencies issued by the central bank of any country or region, whether they are so-called fiat currencies issued by central banks or virtual currencies.
It also does not apply to digital assets such as Bitcoin, which is legal tender in addition to the video game ecosystem and non-fungible tokens.
El Salvador’s Legislative Assembly has overwhelmingly approved a new Digital Securities Law!
Forward, always forward…
More on this thread 👇🏼 https://t.co/8C21ZilyVP
— Nayib Bukele (@nayibbukele) January 11, 2023
Bukele’s office did not immediately respond to a request for comment asking whether the new law would apply to the launch of Bitcoin Volcano Bonds announced by the president in late 2021.
Nonetheless, President Bukele shared a message from the country’s bitcoin office on Twitter, stating that the law also opens the way for $1 billion in “crypto bonds” or “volcano bonds.” rice field.
Today, El Salvador builds on its first mover advantage by passing a landmark law that establishes a legal framework for all digital assets other than Bitcoin. Similar to those issued in Bitcoin.
The law also paves the way for Volcano Bonds, which will begin issuing soon.
— Bitcoin Office (@bitcoinofficesv) January 11, 2023
“Bitcoin City”
In November 2021, Bukele announced the construction of “Bitcoin City” in East La Union. The city is powered by geothermal energy from the region’s volcanoes.
Bukele’s government has already bought 2,381 bitcoins for $107 million.
On November 17th, Bukele announced that the government would buy 1 bitcoin per day, but the duration was not specified.
Bitcoin is currently trading below $20,000 after surpassing $68,000 in November 2021.
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