The idea of ​​El Salvador’s ambitious “Bitcoin bonus” campaign, which was conceived in a period of falling prices in the cryptocurrency market, has already come a long way towards actualization.

Legislation that underscores the government’s intention to create a billion dollars and spend it on the establishment of a “Bitcoin city.” was suggested by the Minister of Economy, María Luisa Hayem Brevé.

It was on November 17 that a 33-page act on digital securities was presented to the House of Representatives of El Salvador in order to develop a legal framework that allows the country to use digital assets in its public offerings.

Volcano bonds, sometimes known as Bitcoin bonds, were first introduced to the financial system by the government of Nayib Bukele, who served as president from 2021 to 2022.

The initial version of the proposal called for the sale of bonds with a total face value of close to $1 billion, with the proceeds from the sale going toward the development of a “Bitcoin City” at the base of the Colchagua volcano. This version of the proposal was scrapped after it was determined that the sale of the bonds would not be profitable.

It is believed that the hydrothermal energy generated by the volcano will make the city an excellent site for a cryptocurrency mining factory, and this will happen since the city will be located very close to the volcano.

Bitcoin would get a direct investment equal to fifty percent of the total amount produced if this proposal were approved.

The company has been continually hampered by postponements over the past year and a half. After initially scheduled to start in early March, the launch phase of the project was first postponed to September, then pushed back again for “security reasons.”

A few different sources have raised the possibility of the proposal being approved by the legislature before the winter break.

When Bitcoin was finally recognized as a form of legal cash on September 7, 2021, El Salvador received more than 2,301 BTC as a reward. This sum is comparable to $103.9 million dollars.

During the period of time when the stock market was thriving, the investment proceeds were even used to contribute to the construction of healthcare facilities and educational institutions.

Despite this, 77.1% of people living in El Salvador are of the opinion that the government should stop “spending public money on Bitcoin”. especially considering the continuing decline of the country’s economy.