- El Salvador has approved Bitcoin-backed Volano Bonds.
- This bill was first made by Nayib Bukele in November 2021.
- 62 parliamentarians voted in favor of the measure.
El Salvador’s legislative assembly has recently approved new legislation that paves the door for the issuance of bitcoin-backed “volcano bonds” as well as other types of cryptocurrencies in addition to bitcoin.
El Salvador’s President Nayib Bukele made the announcement that bitcoin-backed bonds will be used to raise one billion dollars in November 2021. Earlier the same year, El Salvador had been the first nation in Central America to recognize bitcoin (BTC) as a form of legal cash.
Because the money was going to be used, among other things, to seed a bitcoin mining industry that relied solely on renewable energy, including the energy generated by the country’s active volcanoes, the proposed paper quickly became known as Volcano Bonds. This was due to the fact that the money was going to be used.
The issue of the bonds had to be delayed many times, mostly because of the severe bear market that bitcoin experienced in the previous year. The original date for the postponement was March 2022.
At the tail end of November 2022, the measure on digital assets was ultimately submitted to the Legislative Assembly, which is controlled by a huge majority of members belonging to Bukele’s party, Nuevas Ideas.
Recently in 2023, 62 parliamentarians voted in favor of the measure, while 16 politicians voted against it.
In addition, the cryptocurrency exchange Bitfinex said on Wednesday that it “will be an infrastructure provider for what it argues should rightfully be named the “Volcano Token.”
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