The idea for El Salvador's ambitious "Bitcoin bonds" campaign, which was conceived at a period of falling prices in the cryptocurrency market, has already moved forward a significant amount toward actualization.
A legislation that underlines the government's intention to create one billion dollars and spend it on the establishment of a "Bitcoin city." was suggested by the Minister of the Economy, Maria Luisa Hayem Brevé.
It was on November 17 that a measure pertaining to digital securities comprising 33 pages was presented to the El Salvador House of Representatives with the request that they draft a legal framework that would make it possible for the country to use digital assets in its public offerings.
Volcano bonds, sometimes known as Bitcoin bonds, were first introduced by the financial system by the government of Nayib Bukele, who served as president from 2021 to 2022.
The initial version of the proposal called for the sale of bonds with a total face value of close to one billion dollars, with the proceeds from the sale going toward the development of a "Bitcoin City" at the base of the Colchagua volcano. This version of the proposal was scrapped after it was determined that the sale of the bonds would not be profitable.
It is believed that the hydrothermal energy generated by the volcano will make the city an excellent site for a cryptocurrency mining factory, and that this will happen since the city will be situated in close proximity to the volcano.
Bitcoin would get a direct investment equal to fifty percent of the entire amount produced if this proposal were to pass.
The undertaking has been continually hampered by postponements throughout the course of the preceding year and a half. After initially being scheduled to start at the beginning of March, the launching phase of the project was first postponed until September, and then it was delayed once again for "security reasons."
The possibility that the proposal will be approved by the legislature before the winter holidays has been raised by a few different sources.
When Bitcoin was finally recognized as a form of legal cash on September 7, 2021, El Salvador was given more than 2,301 BTC as their reward. This sum is about comparable to $103.9 million dollars.
During the period of time when the stock market was thriving, the gains from the investment were even utilized to contribute toward the building of healthcare facilities and educational institutions.
Despite this, 77.1% of people living in El Salvador are of the opinion that the government should stop "spending public money on Bitcoin." especially considering the continued decline of the country's economy.