Bitcoin bonds approved in Assembly El Salvador, fiat wars with oil trades and Russian stablecoin
El Salvador paves way for first sovereign Bitcoin Bond
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.
The 33-page legislation — which now awaits presidential assent — includes the establishment of a Bitcoin Fund Management Agency overseeing the public offering of digital assets in El Salvador.
Sixty-two legislators supported the bill against sixteen who voted against it in the country’s Legislative Assembly, largely dominated by Bukele’s political party, Nuevas Ideas. The digital asset bill was introduced in November 2022. Per the announcement, crypto exchange Bitfinex would be the technology provider for the bond.
Bitcoin Included? Saudi Arabia to accept non-dollar currencies dor oil
The biggest oil exporter in the world, Saudi Arabia, might take a hit to the U.S. dollar (USD) supremacy for the benefit of Bitcoin and other global currencies.
During the World Economic Forum (WEF) in Davos, the country’s minister of finance, Mohammed Al-Jadaan, hinted at the possibility of accepting non-dollar currencies to trade oil.
Since the 1970s, Saud Arabia has agreed to price its oil in the U.S. dollar, giving this currency and its country an advantage over the world. This system is known as the “Petrodollar,” and it’s part of the machinery that supports the dollar’s global reserve currency status.
There are no issues with discussing how we settle our trade arrangements, whether it is in the US dollar, whether it is the euro, whether it is the Saudi riyal. I don’t think we are waving away or ruling out any discussion that will help improve the trade around the world.
Stablecoin backed by gold to be reportedly launched by Russia and Iran
To better enable international transactions, the governments of Russia and Iran are reportedly considering working together to develop a new stablecoin.
Iran is working with the Russian government to create a “token of the Persian Gulf region” that may be used as a form of payment in international trade, as reported by the Russian news portal Vedomosti.
According to Alexander Brazhnikov, director of the Russian Association of Crypto Industry and Blockchain, the token would likely be issued as a stablecoin backed by gold.
The stablecoin will be used in a free trade zone in Astrakhan, where Russia has started accepting goods from Iran.
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