El Salvador creates National Bitcoin Office

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Key Takeaways:

  • A specialised administrative division for overseeing all cryptocurrency-related projects will be the National Bitcoin Office.
  • Additionally, the new organisation will plan, coordinate, and carry out projects relating to cryptocurrencies, the blockchain, and Bitcoin.

The shocking implosion of the rapidly expanding cryptocurrency exchange FTX in mid-November, which made the cryptocurrency crisis even worst, has sparked concerns about the long-term viability of these virtual currencies. But one of the cryptocurrency’s most well-known supporters is increasing their bets.

The deployment of Bitcoin has taken on a global face thanks to El Salvador. The Central American nation has been using Bitcoin as legal tender for over a year. Since November 18, the nation has been purchasing one Bitcoin every day.

The newly formed National Bitcoin Office (ONBTC) in El Salvador will be in charge of all operations involving Bitcoin, the first and most well-known cryptocurrency.

On November 22, Bukele’s administration sent a bill to El Salvador’s Congress allowing it to sell $1 billion in so-called “volcano bonds,” or government borrowing, which are pegged to the U.S. dollar and pay bondholders 6.5% interest annually, in order to purchase more cryptocurrency and create a coastal “Bitcoin City.”

Decree No. 49, which was published in the Official Gazette on November 17 and was signed by the President of El Salvador and the Ministry of Tourism, established the organisation. Additionally, ONBTC will work with other countries on cryptocurrency-related issues.

In the LinkedIn post, it is stated that “Article 2 defines the objective of the ONBTC which will be to design, diagnose, plan, program, coordinate, follow up, measure, analyse and evaluate plans, program and projects pertaining to Bitcoin for the country’s economic growth.

Additionally, the ONBTC must assist foreign Bitcoin, Blockchain, and cryptocurrency businesses and investors who wish to do business in El Salvador and visit the nation, as well as actively promote El Salvadoran participation in various multilateral conferences.

Attempting to understand and disseminating information on Bitcoin, blockchain technology, and cryptocurrencies in El Salvador “to the media and any interested person” will be one of the organization’s other major responsibilities.

Additionally, the ONBTC is responsible for managing and analysing all individuals requesting meetings with the President of the Republic in order to implement Bitcoin and blockchain technology in El Salvador.

The creation of pertinent policies regarding Bitcoin and Blockchain that the Presidency defines in the short-, medium-, and long-term as well as its correspondence with financial and educational programmes in collaboration with the enabling Legislation are some of the other duties of the Bitcoin Office.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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