El Salvador Seeks Lawmakers’ Approval To Raise $1B Bitcoin Bond

• El Salvador presidency dispatches a digital-securities bill to lawmakers.
• The bill involves raising $1 billion via blockchain bonds for Bitcoin City construction.
• Previously, El Salvador promised to buy one BTC daily from November 18.

The Bitcoin-friendly country, El Salvador, has taken a formal step toward issuing the first sovereign blockchain bond in history. According to a Bloomberg report, the government of El Salvador has transmitted a 33-page legislation calling for a digital-assets commission and a Bitcoin Fund Management Agency to oversee crypto-related debt sales.

The report remarked that the digital securities bill involves raising a $1 billion fund, of which $500 million would be for the Bitcoin City infrastructure and another $500 million to buy Bitcoin tokens. Notably, the bondholders would share in any appreciation in the Bitcoin asset.

Interestingly, the minimum required investment would be $100 to fund the construction of a tax-free, coastal Bitcoin City with geothermal energy from a nearby volcano for mining digital coins.

Furthermore, the proposed bill aims to “create a legal framework to transfer digital assets used in public issuances in El Salvador, as well as regulate the requirements and obligations of issuers and providers of digital assets.”

As of last week, after Bitcoin touched its two years low of $15,500, the president of El Salvador, Nayib Bukele, announced that the country would be buying one unit of Bitcoin every day starting November 18, 2022.

According to information from BuyBitcoinWorldwide, El Salvador holds 2,381 BTC with an average purchase price of $43,357. Although the country has invested $103,233,360 in these crypto purchases, the current market value sits at $39.47 million, implying more than $63 million in losses.