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Bitcoin bond bill submitted to parliament in El Salvador; US Senator Elizabeth Warren: “Cryptos will destroy the economy!”; Letter from Sam Bankman-Fried to FTX employees: “We may still have a chance.

Bitcoin bond bill submitted to parliament in El Salvador

While the correction in the crypto market continues, El Salvador has finally taken a decisive step towards realizing its “Bitcoin bond” project. El Salvador’s Minister of Economy, Maria Luisa Hayem Brevé, has introduced a bill confirming the government’s plan to spend $1 billion in BTC bonds to build the “Bitcoin City.”

The 33-page bill on digital securities, submitted to the legislature on October 17, aims to establish the legal framework for using digital assets in bonds issued by El Salvador. All the requirements for this procedure and the liabilities of the asset providers and issuers also need to be evaluated.

The idea of ​​bitcoin bonds or “volcano bonds” was put forward by the country’s president, Nayib Bukele, in 2021. The initial plan was to raise about $1 billion from these bonds and use some of it to construct Bitcoin City on the Colchagua volcano. It was planned to establish a city very suitable for crypto mining with hydrothermal energy that could be produced from the volcano. Half of the collected amount would be deposited directly into bitcoin.

The project has been repeatedly delayed over the past 12 months, but it looks like El Salvador will actually do it this time.

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US Senator Elizabeth Warren: “Cryptos will destroy the economy!”

U.S. Senator Elizabeth Warren has published a new column on FTX and its negative impact on the market. In particular, she stated that the collapse in FTX is a big call for regulators to take action.

Read more:  Janet Yellen Says Stablecoins can Lead to Instability

Shortly afterward, Binance CEO Changpeng Zhao shared a post on the subject without specifically referring to Warren’s article. Zhao said that wherever there is progress, there can be failures, and this is very natural.

With the scandal around FTX, many US politicians continue to voice their concerns. On the other hand, Warren has been critical of the crypto industry for almost a year. The senator had previously described Decentralized Finance (DeFi) as dangerous.

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Letter from Sam Bankman-Fried to FTX employees: “We may still have a chance.”

Sam Bankman-Fried, the former CEO of the cryptocurrency exchange FTX, sent a new letter to company employees. Having said he was sorry, Bankman-Fried pointed out that there may still be a chance for FTX to be rescued.

The letter stressed that FTX was still valuable, reminding that investors are ready to pour billions of dollars during the bankruptcy announcement. “We could probably raise substantial funds and save the company,” said Bankman-Fried, admitting that it was no longer in his power to change the company’s course.

The letter was leaked to the public via Twitter. 

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