El Salvador is making moves that could lead the country to raise $1 billion in Bitcoin-backed bonds, despite international concerns over the country’s cryptocurrency exposure to volatile price fluctuations. A flash move came from El Salvador as this month’s collapse of FTX, once the world’s third-largest crypto exchange, exacerbated challenging conditions in the crypto market. El Salvador’s Minister of Economy has introduced a 33-page bill that aims to expand the legal framework that will lead to all cryptocurrencies.
The bill submitted to the legislature directs the country to potentially raise $1 billion in the world’s first government bonds backed by Bitcoin using blockchain technology. The bill will go to Congressional vote at a time when the cryptocurrency market is mired in the crypto winter where the prices of Bitcoin and other digital currencies are sharply lower than last year.