Salvador: The "Volcano Bonds" resurface

Nayib Bukele’s government is pulling the Volcano Bonds out of the drawer. The bill paves the way for issuing bonds backed by bitcoin.

There is bitcoin and the rest

Proposed a year ago, the purpose of the Volcano Bonds is to attract capital to El Salvador.

These funds will make it possible to build energy infrastructures capable of supporting a bitcoin mining industry.

Without forgetting the famous Bitcoin City to spread out at the foot of the volcano which will provide the necessary geothermal energy.

Sébastien Gouspillou was delighted that the Salvadoran president is moving forward. The French miner who has always been at the bedside of El Salvador went there with his little sarcasm: “The whole crypto planet is affected by the FTX scam? Not El Salvador. »

Same story on the side of Max Keiser, who yesterday answered questions from Charles V Payne. The latter held out the pole to him by throwing only “many mainstream media use FTX bankruptcy to break sugar on bitcoin”and that it was therefore the perfect time to explain the difference between crypto and bitcoin ».

Spicy response from Max:

“There are no scams here in El Salvador. President Bukele made bitcoin a common currency last year. He had warned at the time that there would be no place for shitcoins, Sam Bankman-Fried, Charles Hoskinson (founder ethereum), Mike novogratz (CEO Galaxy having made an intense promotion of Terra- Luna) […]. Conversely, in the United States and other regions, the authorities let these scammers flourish in complete freedom. »

“You didn’t lose money to FTX, you heroically donated money to Ukraine, re-election campaigns and media kickbacks. »

Bond, Volcano Bond

Regarding Volcano Bonds (an idea by Max Keiser):

“Mining in El Salvador will be financed with these Volcano Bonds. […] The law that will formalize their creation stipulates that it is a commodity and that anything other than bitcoin is a security. Ethereum is a security. XRP is a security. Cardano is a security. The 20,000 shitcoins that abound are securities. NFTs are securities. They must register with the regulator. Nobody else does, hence the emergence of scammers like Sam Bankman-Fried who operate without barriers to scam people. SEC Chairman Gary Gensler and Democratic Party pundits are implicated. »

To which the journalist replied: ” I think that they let all these scams spread because they are scared of bitcoin. The regulator could have intervened. The poets too. But they preferred to let the Americans wash their hands, once again. »

The proposed law plans to grant a license to the exchange Bitfinex in order to implement a listing of these Volcano Bonds. Bitfinex CTO Paolo Ardoino was ecstatic:

“This digital securities law will allow El Salvador to be the financial center of Central and South America”he launched on Twitter.

These bonds will offer a yield of 6.5% as well as preferential treatment to obtain Salvadoran nationality. Interesting for those looking to invest their bitcoins without having to pay capital gains tax…

The tabling of the bill is an important first step. The vote is expected to take place before Christmas, according to sources at Bitcoin Magazine. Viva el dictator Bukele!

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