The approval of “digital asset printing” will bring a long-awaited regulatory framework for securities, altcoins and tokenized transactions.
El Salvador has had a difficult year while softening Bitcoin in the country. But the country’s parliament voted to pass a landmark law – the law on the issuance of Digital Assets – which is expected to pave the way for the issuance of bitcoin bonds by President Nayib Bukele, aka Volcano bonds.
The new law will focus on creating a legal framework for the transfer of digital assets and a broader cryptographic classification, which includes other types of digital assets in the market in addition to Bitcoin. This means that there is now a well-organized system for tokenized securities, altcoins, and businesses that want to trade or provide services focused on digital assets other than bitcoin.
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The Debt of the Salvadoran Bitcoin Company
President Bukele first announced a plan to issue $1 billion in bonds on the Blockstream liquidation network, part of the integrated bitcoin network, in November 2021. The launch of the link has been delayed several times, in part due to the endless wild market and subsequent turmoil that caused the price of Bitcoin to drop significantly.
Finally, the Legislature approved the Digital Assets Bill in November 2022 and passed on January 11 of this year through Bukele’s Nuevas Ideas – 62 Legislators voted in favor and 16 against. With the introduction of the link, half of the money will be invested in Bitcoin while the rest will be invested in building the necessary infrastructure for the BTC industry. In addition, this chain will pay a fee of 6.5% and will allow citizens to get investors.
According to El Salvador‘s ONBTC, this law also marks the creation of the National Commission for Digital Assets. This regulatory agency will be responsible for implementing security laws and protecting the rights of digital asset buyers and providers in the country, as well as preventing fraudulent companies from operating. “The law gave another flag in the history of El Salvador. Under President Bukele, El Salvador has become not only the safest country in Latin America, but also the most protected country with economic freedom, sovereignty and prosperity.
Tether’s Paolo Ardoino called the event a “big win” and added, “El Salvador is in a critical situation, giving its citizens the best tools for independence.”
Launch of the National Digital Asset Bitcoin Office (ONBTC)
This law follows the establishment of a new “special administrative unit” National Bitcoin Office (ONBTC), established in November 2022. As previously stated, ONBTC will be responsible for “designing, researching, planning, programming, organizing, monitoring, evaluating, evaluating and evaluating the use of Bitcoin for the economic development of the country.”
In addition, cryptocurrency exchange Bitfinex, in a statement, revealed that it will be the technology provider for El Salvador’s Volcano Token.
“We are watching this development with interest, along with the rest of the Bitcoin community.”
