English
Salvadoran lawmakers pass digital asset issuance law in bitcoin haven
El Salvador, which two years ago became the first nation in the world to accept bitcoin as legal cash.
A legislation governing the issuing of other digital assets by both the state and private companies was adopted by El Salvador on Wednesday. El Salvador was the first nation in the world to accept bitcoin as legal cash two years ago.
The initiative, which has the support of parliamentarians from the governing party who are aligned with President Nayib Bukele, wants to draw domestic and international investors while opening up new funding options for individuals, businesses, and the government.
The motion was approved by legislators in the unicameral Congress, which is presided over by Bukele's New Ideas party, with 62 in favor and 16 against.
The legislation states that the goal of the bill is to "create the statutory framework that allows legal certainty to transfer operations to any title of digital assets utilized in public issuance offerings."
The legislation states that issuers have the right to make public offerings utilizing already-existing digital assets, with the potential to generate new ones using them.
The National Commission for Digital Assets and the Bitcoin Proceeds Administration Agency are also established under the legislation, and they will be in charge of administering, protecting, and investing the funds from the government's public offers of digital assets.
The legal rules do not apply to digital currencies, including crypto-currencies and so-called "fiat money," issued by central banks of any nation or territory.
In addition, it wouldn't apply to non-fungible tokens, the video gaming ecosystem, or digital assets like bitcoin that are legally recognized as legal cash.
The debut of the bitcoin volcano bonds that the president promised in late 2021 would be covered by the new law, but Bukele's office did not answer to a request for comment right away.
Nevertheless, the legislation also opens the door for volcanic bonds to be issued shortly, according to a tweet from the nation's bitcoin office that President Bukele published on Twitter.
Bonus rebate to help investors grow in the trading world!
