El Salvador has proposed 20 bills for the legalisation of bitcoin bonds, with funds to be used to build Bitcoin City and purchase bitcoin.

El Salvador is prepared to present 20 laws to provide a legal framework for the country’s planned bitcoin bonds. The monies will be used to create infrastructure for Bitcoin City and to purchase additional bitcoin, according to the Salvadoran government.

El Salvador is putting together a legal framework for bitcoin bonds.
Alejandro Zelaya, El Salvador’s finance minister, stated in a local television interview on Tuesday that his administration will present roughly 20 bills to Congress regarding the country’s bitcoin bonds.

He said that the measures will include financial markets and securities investment to offer a legal foundation for issuing bitcoin bonds, and that the laws will also provide a framework for equivalent market regulation and the issuance of securities in crypto assets. According to the finance minister:

This is to give everyone who buys a bitcoin bond a legal framework and legal certainty.

According to the Salvadoran government, half of the revenue earned from the bitcoin bonds would be used to construct infrastructure, and the other half would be used to purchase bitcoin.

El Salvador’s president, Nayib Bukele, declared in November that he plans to sell $1 billion in bitcoin bonds with a 6.5 percent coupon rate to fund the development of Bitcoin City. Bukele went on to say that the city would be fueled by a volcano and that there would be no taxes save for VAT.

The bitcoin bonds are expected to be issued this year. This week, Bukele projected that it would be overcrowded. He also mentioned that the development of Bitcoin City will begin this year.

El Salvador approved a bitcoin law in September of last year, making bitcoin legal money alongside the US dollar. The nation has since acquired 1,391 bitcoins.