The government of El Salvador has prepared 20 bills to create a legal and financial framework for the issuance of a $1 billion bitcoin bond.
The Head of Treasury, Alejandra Zelaya, notes that the draft of bills addresses the regulations around issuing cryptocurrency as securities and its viability.
Zelaya reveals that there is a substantial interest for the bond among investors for its exposure to bitcoin and the 10-year maturity period of 6.5% interest.
El Salvador has partnered with Blockstream and iFinex in the rollout of the Volcano Bonds, where the security would be issued on Blockstream’s liquidity network.
El Salvador’s leader, Bukele, announced on January 2 that Bitcoin City would start construction and that the bonds would be oversubscribed.
The city is funded using the bonds and would feature digital and technological education, geothermal energy, and public transportation.