El Salvador has made history by passing a digital securities bill that will allow the country to issue bonds based on Bitcoin.
The bill, which was first introduced to parliament in November, was approved by the legislative assembly on January 11th, with 62 votes in favor.
The digital securities bill aims to establish a legal framework for the transfer of digital assets, including Bitcoin, in the context of public offerings.
It also calls for the creation of a national digital assets commission to serve as a regulatory body for cryptocurrencies and promote the market.
The most notable aspect of the bill is the creation of a Bitcoin Fund Administration Agency. This new agency will be responsible for the administration, safeguarding, and investment of funds raised through public offerings of digital assets carried out by the Salvadoran government, as well as returns generated from such offerings.
Although the bill passed, it was not unanimous, with some legislators arguing that the bill did not address the public’s needs.
The main purpose of the bill is believed to be to facilitate the issuance of “Volcán” bonds, named after one of El Salvador’s volcanoes.
This bill is a significant step forward for the country, positioning it as the first in the world to allow the use of Bitcoin in the public market.
This could open the door for other countries to follow suit and expands the scope of Bitcoin and other digital assets.
