The Salvadorian national assembly is considering a draft bill to regulate digital securities, which indicates they plan to issue bitcoin-backed bonds.

The bill, which is being presented by El Salvador’s Minister of El Salvador to the Legislative Assembly of El Salvador, seeks to establish a National Digital Assets Commission that would oversee the regulation of digital assets issuers, service providers and other participants involved in the “public offering process” of digital securities according to the 33-page document reviewed by CoinDesk.

In 2021, under the leadership of President Nayib Bukele, the Central American nation became the first in the world to legalize bitcoin. Apart from buying up bitcoin during price dips and openly sparring with the International Monetary Fund as it warned the nation to reverse its decision, Bukele doubled down on the controversial move by revealing plans to raise $1 billion via bitcoin-backed bonds.

Although the El Salvador “volcano bonds” were originally planned to be released in March, they were delayed due to the instability of the Ukraine and Russia.

If passed into law, the new regulation mandates the creation of a Bitcoin Fund Agency dedicated to administering, safeguarding, and investing public funds raised from public offerings of digital assets by the government. There will also be returns made from these public offerings.

This article gives a full accounting of Bitcoin’s first year in El Salvador. It explores the bad, the good, and the ugly.

The legislation must be passed ahead of the bond issuance and President Bukele’s New Ideas party has a majority in Congress. This document was submitted on November 17th to the legislative arm of the government.