“This type of legislation is what we are going to send to the Legislative Assembly to be able to give legal scaffolding and legal certainty to all those who buy the Bitcoin bond“said Finance Minister Alejandro Zelaya in an interview on local television. The official did not give details of when the legal proposals will be sent to the legislature.
The Government reported late last year that the first Bitcoin-backed bond issuance would be made in 2022 for an initial amount of $ 1 billion and a term of 10 years.
Half of the funds raised would be used for the construction of infrastructure and the other for the purchase of cryptocurrency, the authorities detailed last November.
The International Monetary Fund has recommended that the Salvadoran government not adopt Bitcoin as legal tender, arguing that its volatility implies risks for consumers as well as for the integrity of the country’s financial system.
What will the “Bitcoin City” be like?
With the transformation of the country as a goal, Bukele’s plan aims to create a city in the shape of a coin and supply it with services, such as restaurants, residential areas, shops and even an airport. The venue will be free of income, capital gains and property taxes, the only tribute would be value added tax (VAT). This is intended to be used to finance the bonds issued for construction and services such as garbage collection.
It is estimated that the public infrastructure will cost around 300,000 bitcoins, more than 15,000 million euros. President Bukele’s blind faith in cryptocurrency, which compares the creation of his ‘Bitcoin City’ to the circular cities of Alexander the Great, generates some skepticism among Salvadorans. “If we want bitcoin to spread around the world, we should build some Alexandrians,” the President assured last year when he made the announcement.
Source From: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
