El Salvador’s Digital Currency Vision: BTC Bonds and BTC Cities

Source: Bitcoinist

Compile:Blockchainknight

Ahead of El Salvador's national elections on Sunday, Vice President Felix Ulloa, in an exclusive interview with Reuters, outlined the government's strong commitment to BTC, especially in the context of President Nayib Bukele's potential re-election.

Vice President Ulloa is currently on leave while running for re-election with President Bukele,He confirms that BTC’s legal tender status in El Salvador will remain intact.

This statement comes as El Salvador is negotiating a $1.3 billion loan with the IMF (International Monetary Fund), in which the IMF recommended that El Salvador "reconsider" adopting BTC.

Ulloa saidXiaobai Navigation,The government of El Salvador is firmly opposed to changing its decision on BTC, especially in light of the recent SEC (U.S. Securities and Exchange Commission) approval of a spot BTC ETF to be listed in the United States..

The vice president also said: "BTC will be protected by law as a legal currency. Moreover, it enjoys the greatest credibility in the world."

If President Bukele and his New Ideas party win the upcoming election, as polls widely predict, the El Salvadoran government intends to launch BTC-backed bonds, commonly known as “volcano bonds,” in the first quarter of 2024.

The bonds are part of a broader effort to leverage BTC to boost the country’s economy, closely related to the proposed BTC City project, which includes BTC mining using volcanic geothermal energy.

President Bukele’s proposal to build a tax-free crypto asset hub, BTC City, in eastern El Salvador remains a key part of the government’s plans.

Additionally, the government aims to issue passports to BTC investors who contribute the equivalent of $1 million, a move aimed at attracting large BTC investments into the country.

In September 2021, El Salvador made history and became the first country to designate BTC as a legal tender. This decision attracted strong criticism from the international community, especially from the IMF.

However, the 72-year-old lawyer and Vice President Ulloa remains hopeful that the country can overcome related challenges and obtain IMF financing, especially considering that "most elements of the package have been agreed."

This firm attitude towards incorporating BTC into El Salvador’s financial system marks an important chapter for digital currencies in the national economy and globally..

The results of the upcoming election will be critical in determining the future trajectory of these groundbreaking initiatives.

The article comes from the Internet:El Salvador’s Digital Currency Vision: BTC Bonds and BTC Cities

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