- This grant paves the way to a $1T market via Bitfinex securities.
- El Salvador passed the bill to issue Bitcoin-backed Volcano bonds.
- The move also includes tokenized shares and yield-bearing assets.
El Salvador makes another massive step towards becoming the next crypto hub with legislation favorable for cryptocurrency payments and blockchain technology. On April 11th, 2023, Bitfinex Securities El Salvador obtained licensing permission from El Salvador’s National Digital Asset Commission to operate in the Latin American country.
The unprecedented move is bound to open doors to a $1 trillion market, with the potential to grow into a $3 trillion market cap in tokenized assets. The breakthrough in crypto legislation will help crypto startups “tap into a class of investors that are extremely comfortable with crypto assets and tokenized securities,” explained Paolo Ardoino, Chief Technology Officer at Bitfinex.
Volcano Bonds Are Getting Ready to Erupt
The already famous Bitcoin Volcano Bonds have been postponed three times before, as the crypto market was in extremely volatile conditions. However, Mr. Ardoino confirmed last month that the Volcano Bonds might be due for a September 2023 release.
Meanwhile, with Bitcoin breaking through $30,000 for the first time since June 2022, safer market conditions can attract more investors. As the top digital asset solves a significant problem for most of El Salvador’s population with fast transfers on Bitcoin Lightning via mobile devices, Bitcoin’s adoption tackles the issue of social inequality.
Pro-Bitcoin President Nayib Bukele hadn’t mentioned a launch date in his tweets yet. Instead, the Legislative Assembly of El Salvador passed the law in January, preparing the Bitcoin-backed Volcano Bonds for issuance. The bill was passed in a comfortable majority on January 11th, 2023. Further on, Nayib Bukele signed a bill to eliminate tech company taxes, including income, property, and capital gains.
On the Flipside
- The economic achievements of El Salvador over the last year are not entirely related to making Bitcoin legal tender.
- Skyrocketing tourism due to the uncompromising crackdown on violent street gangs also led to more investors.
- The International Monetary Fund (IMF) said, “Bitcoin’s risks should be addressed” in a concluding statement on El Salvador.
Why You Should Care
Bitcoin adoption as a legal tender heavily accelerated the small nation’s growth.
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