The Legislative Assembly of El Salvador has approved a digital securities law allowing Bitcoin-backed bonds, which El Salvadoran President Nayib Bukele has been advocating. The bill received 62 votes in favor and 16 against and will come into force after Bukele's approval.
Local media outlets claim that the bill’s purpose is to facilitate the issuance of a Bitcoin-backed bond, also known as the “Volcano Bond”, while the opponents of the bill say it doesn’t solve the public’s problems. The Volcano Bond is expected to be used to pay off government debt and finance the construction of the planned “Bitcoin City”. A Bitcoin Fund Management Agency will also be established, which will focus on the management, protection, and investment of funds from the public offerings of digital assets carried out by the State of El Salvador and the returns from these public offerings.
It has been over a year since El Salvador became the first country in the world to adopt Bitcoin (BTC) as legal tender, but the country's Bitcoin policy doesn't seem to attract much public attention. Research conducted by the University of Central America (UCA) shows that about 77% of El Salvador residents believe that the adoption of Bitcoin is a failure. On the other hand, Bukele's confidence in Bitcoin is so high that he plans to buy one BTC every day, ignoring the criticism.
