In 2021, the Republic of El Salvador announced that it would raise $1 billion through bitcoin bonds, also referred to as the Volcano Bonds, because of the use of renewable energy, including that generated from the country’s active volcanoes, to fund bitcoin mining.

The seemingly distant dream could soon be a reality after the Salvadorian Legislative Assembly passed a law governing the issuance of digital assets besides BTC. Although it was planned for March last year, the legislative agenda was postponed severally due to the bear market.

Dubbed the ‘‘Digital Asset Issuance’’ securities law, the bill provides a legal framework involving the issuance of digital assets and classifies other non-bitcoin cryptocurrencies – including tokenized securities, alternative coins, and their virtual assets service providers (VASP).