Congressional consideration of a digital asset management bill shows that El Salvador is going on with its desire to issue bitcoin-related financial certificates.
The Legislative Assembly of El Salvador received a bill from Minister of the Economy Maria Luisa Hayem Breve.
The bill would establish state committee on the crypto-related assets, which would be in charge of supervising the organizations that operate with electronic currency and suppliers that offer cryptocurrency safeties, according to the 33-page document.
President Naiba Bukele will lead the Central American nation in 2021 as it becomes the 1st country to make Bitcoin legal.
Bukele not only publicly disagreed with the IMF when it altered its mind and advised nations to stockpile Bitcoin when prices fell, but also increased one-billion-dollars through Bitcoin-related bonds.
The controversial choice
The release of El Salvador’s volcanic bonds, originally scheduled for release in March, has been delayed, according to Alejandro Celaya, finance minister. Due to regulatory problems and a lack of investor interest, Volcano’s bond issues are also having troubles.
In order to manage, safeguard, and invest finances in the electronic possessions provided by the state and its departments, the new regulation is needed. If approved, it would mandate the establishment of a Bitcoin fund management organization.
Disadvantages of Bitcoin
Unfortunately, one year has passed, but Bitcoin has not yet completely liberated El Salvador from dollar pegs. BTC did not function as an inflation hedge, at least not right away.
The majority of Bitcoin transactions in El Salvador have now been stopped due to the market decline over the last nine months. Bukele’s desire to stake open funds on a somewhat speculative Bitcoin wager now seems utterly absurd.
In other words, so far, everything has been jumbled. Nevertheless, lots of professionals postulate that real payoffs are yet to be seen in the future.
Even though it has only been a twelve-month time period, a significant change like the Bitcoin experiment in El Salvador takes longer to fully understand its effects. But in general, people need to wait to see the long-term consequences of such decisions.