El Salvador recently passed historic legislation that establishes the legal foundation for a Bitcoin-backed bond, dubbed the “Volcano Bond,” that will be used to pay down the country’s debt and finance the development of its envisioned “Bitcoin City,” as reported by Cointelegraph.
Cointelegraph noted that with 62 votes in favour and 16 votes against, the bill was approved on Jan. 11. It will become a law once President Bukele ratifies it.
On January 11, the National Bitcoin Office of El Salvador tweeted about the bill’s passage and said it would soon start issuing the bonds.
The Volcano Bond, or Volcano Tokens, would enable El Salvador to raise capital to pay down its sovereign debt, fund the development of the Bitcoin City, and establish Bitcoin mining infrastructure, according to cryptocurrency exchange Bitfinex, which is the technology provider for the bonds, Cointelegraph further noted.
Cointelegraph further stated that the Volcano Bond, or Volcano Tokens, would enable El Salvador to raise capital to pay down its sovereign debt, fund the development of the Bitcoin City, and establish Bitcoin mining infrastructure, according to cryptocurrency exchange Bitfinex, which is the technology provider for the bonds.
(With insights from Cointelegraph)