• El Salvador’s congress has passed a digital securities law that would allow the nation to issue Bitcoin-backed bonds, also known as Volcano Bonds.
• The National Bitcoin Office (ONBTC) of El Salvador announced the news and will soon begin issuing the bonds.
• President Nayib Bukele initially announced bitcoin-backed bonds in November 2021 along with the intention to establish the world’s first “Bitcoin City.”

El Salvador has become the first country in the world to approve a law that will allow it to issue Bitcoin-denominated bonds. The Legislative Assembly of El Salvador voted in favor of the bill by 62 votes to 16 on January 11th. The bill will become law after being ratified by President Bukele.

The new law was proposed by the National Bitcoin Office (ONBTC) of El Salvador, a “specialized administrative unit” tasked with coordinating and consulting all Bitcoin-related projects in the country. The ONBTC announced the news on Twitter and noted that it would soon begin issuing Bitcoin-backed bonds, also known as Volcano Bonds.

The bonds are a form of digital securities that are backed by Bitcoin and are used to raise funds for the government. President Nayib Bukele initially announced the plan to issue Bitcoin-backed bonds in November 2021, along with the intention to establish the world’s first “Bitcoin City”. The city is set to be built in the southeastern district of La Unión and will contain residential sections, commercial areas, museums, entertainment venues, an airport, railway, and other essential infrastructure. The government aims to raise $500 million to fund the development of the city.

The Bitcoin City project is part of the government’s effort to make El Salvador a leader in blockchain technology and digital asset development. President Bukele has also proposed a law that would make Bitcoin a legal tender in the country. This law is currently awaiting approval from the Legislative Assembly.

If the law is passed, El Salvador will become the first country to make Bitcoin a legal tender. This could have a major impact on the global cryptocurrency market and pave the way for other countries to do the same. It could also lead to increased investment in the country and help to drive economic growth.

The future of Bitcoin in El Salvador is looking bright, and the nation appears to be leading the way in cryptocurrency adoption. With the passing of the digital securities law and the potential for Bitcoin to become a legal tender, El Salvador could soon become a major hub for cryptocurrency activity.

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