El Salvador, the small Latin American country that’s pioneering Bitcoin (BTC) adoption, just made a huge step towards launching the highly anticipated Volcano bonds. In addition to the BTC bonds backed by an actual volcano, the new legislation will lay the groundwork for alternative cryptocurrencies as well. Hence, the move is made according to El Salvador’s plans to create the leading global crypto hub.
BTC Powered By An Actual Volcano
The hugely anticipated BTC Volcano Bond is an actual geothermal bond, which is used to extract lava and transform it into digital energy. This generates digital property and can be used to transfer money all around the world.
In El Salvador’s case, this BTC mining strategy is powering the Lightning network. Ultimately, the launch of the Volcano Bonds would let crypto enthusiasts and corporate investors hold shares and capitalize on El Salvador’s BTC plan by purchasing the bonds.
El Salvadoran Congress Considers The Bill
The new bill is called The Digital Assets Issuance Bill and consists of 33 pages. The BTC-loving president Nayib Bukele signed the document and passed it on to the legislative assembly. Once Congress approves the crypto bill, cryptocurrencies will be fully legalized in El Salvador. As BTC is already legal tender, the Digital Assets Issuance Bill would cover digital assets beyond BTC, as well as:
- Create a registry of digital currencies, suppliers and providers
- Make a clear definition of stablecoins and altcoins
- Provide tax exemption in certain areas in some cases
On top of that, El Salvador would become the first country in the world to fully legalize all cryptocurrencies. According to cryptocurrency lawyer Ana Ojeda Caracas, the legislation came straight from the office of El Presidente and will play a key role “in shaping the crypto ecosystem in El Salvador.”
On the Flipside
- Currently, El Salvador’s Bitcoin (BTC) portfolio is down by 63%, which is $67M less than the original investment.
- Some analysts believe that El Salvador might default on its $800 million sovereign debt next year.
Why You Should Care
El Salvador’s pioneering steps in relation to crypto might accelerate overall adoption. Besides, the clear legal framework in a country that favors crypto might serve as a great example for other nations looking to adopt the invention.
Learn more about El Salvador’s trailblazing Bitcoin (BTC) strategy: