El Salvador continues its journey as a pioneer country in the field of cryptocurrencies.
For better or for worse, Nayib Bukele, President of El Salvador, took Bitcoin to another dimension in 2021, when it became an official currency for the first time in its short history, a status that some economists and politicians, visibly gifted at denying the obvious, yet still refuse to acknowledge.
Be that as it may, El Salvador continues this adventure against opposition and criticism. The last step has just been officially voted by its Legislative Assembly, with the adoption of a new law favorable to cryptocurrencies besides Bitcoin. More specifically, it is a framework to legally protect transfers and debt issuances.
A Legal Framework for All Cryptocurrencies
The information was obviously transmitted on the official Twitter account of Nayib Bukele. “The Legislative Assembly of El Salvador has just approved, by an overwhelming majority, the new digital securities law.” A text that therefore opens the borders of this country to all altcoins, that is, “to all digital assets that are not bitcoins. As well as those issued in bitcoin”, in the words of the National Bitcoin Office (ONBTC):
“Today, El Salvador is leveraging its first-mover advantage by passing landmark legislation that establishes a legal framework for all digital assets other than bitcoin, as well as those issued in bitcoin. The law also paves the way for Volcano bonds that we will soon begin issuing.”
This is a “historic legislation”, presented as favorable to cryptocurrencies. Generally speaking, it is a desire to protect transfers made with these digital currencies, in order to provide unprecedented consumer security against bad actors in the crypto space. Everything happens under the supervision of the National Commission of Digital Assets, in charge of enforcing this law, and “protecting the rights of buyers of digital assets as well as issuers in El Salvador.”
1 Billion “Volcanic Bonds”
There is also a second aspect to this “historic legislation”. The regulatory framework thus defined will allow El Salvador to issue its famous Bitcoin bonds, also called “volcanic bonds”, a process that started as soon as the project was officially announced, in November 2021. This was completed through the issuance of one billion dollars in bonds backed by BTC.
This is how the National Bitcoin Office describes it:
“El Salvador is the epicenter of bitcoin adoption and therefore of economic freedom, financial sovereignty, resistance to censorship, and nonforfeitable wealth. When we issue the first volcano bonds, we will once again pave the way for this new monetary revolution.”
In short, it is an approach that will once again make El Salvador a pioneer country in the field of cryptocurrencies. This is a result of having President Nayib Bukele whose politics with a strong Bitcoin maximalist tone questions, as much as fascinates, the ranks of fans of this decentralized digital economy. One thing for sure is that, for both fans and opponents, the history of this ecosystem is being written before our eyes.
By Audy Castaneda
