El Salvador Moves Forward to Issuing Bitcoin Bonds, Passes Digital Securities Bill

Progress toward Bitcoin bond issuance

El Salvador’s parliament has passed a bill on digital assets, the Digital Securities Law.

The law applies to digital assets other than Bitcoin (BTC), which the country has recognized as legal tender. Digital assets related to bitcoin will be covered, so bitcoin bonds will be able to be issued once the law is enacted.

Relation: El Salvador Announces City Plan for Bitcoin Promotion Special Zone Issues Bonds Equivalent to 110 Billion Yen

The passage of the bill was also reported by President Najib Bukele of El Salvador. In doing so, President Bukele quoted an explanation from the national organization he oversees, “The Bitcoin Office.”

El Salvador’s Legislative Assembly has just been approved, by an overwhelming majority, the new Digital Securities Law!

Forward, always forward…

More information on this thread https://t.co/8C21ZilyVP

— Nayib Bukele (@nayibbukele) January 11, 2023

The Bitcoin Office says it will start issuing Bitcoin bonds soon. In addition to making bitcoin a legal currency, it has expressed hope that a new financial revolution will advance, but the issuance of bitcoin bonds has been postponed due to the situation in Ukraine and financial market conditions.

Relation: El Salvador Finance Minister “Now is not the time to issue Bitcoin bonds”

Currently, it is difficult to say that the situation in Ukraine and the financial market have improved, but it has been reported that preparations are underway for the issuance of Bitcoin bonds.

Relation: El Salvador Submits Bill to Issue Bitcoin Bonds

Concerned about the law

Although the details of the Digital Securities Law have not been clarified, El Salvador’s specialization as a crypto asset (virtual currency) issue appears to be Bitcoin. The Bitcoin Office tweeted that “El Salvador is the Land of Bitcoin” and that it “opens up business opportunities for those who build a future based on Bitcoin”.

The law establishes rules to protect customers and investors from fraud when issuing digital assets such as bitcoin bonds. It also decided to establish an organization called the “National Digital Assets Commission” to build a healthy market.

On the other hand, according to local media “ElSalvador.com”, if the law is enforced with the current content, it will encourage the issuance of digital assets such as Bitcoin bonds, and there are concerns that it will lead to money laundering and tax evasion. said to be on the rise.

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