By securing outside funding support through the pioneering Volcano Bonds, El Salvador can continue progressing with Bitcoin integration across governmental services and society. El Salvador has successfully overcome a significant regulatory hurdle as it pursues the introduction of Bitcoin-backed sovereign debt instruments, referred to as “volcano bonds”. The nation’s Digital Assets Commission has provided the necessary approvals for the bonds to proceed, marking a significant milestone in the path towards their issuance, now slated for 2024. Volcano Bonds The Volcano Bonds intend to help El Salvador decrease existing sovereign financing costs and also fund the development of Bitcoin City, a planned metropolis centered around Bitcoin and blockchain innovation. The bonds will debut on the
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By securing outside funding support through the pioneering Volcano Bonds, El Salvador can continue progressing with Bitcoin integration across governmental services and society.
El Salvador has successfully overcome a significant regulatory hurdle as it pursues the introduction of Bitcoin-backed sovereign debt instruments, referred to as “volcano bonds”. The nation’s Digital Assets Commission has provided the necessary approvals for the bonds to proceed, marking a significant milestone in the path towards their issuance, now slated for 2024.
Volcano Bonds
The Volcano Bonds intend to help El Salvador decrease existing sovereign financing costs and also fund the development of Bitcoin City, a planned metropolis centered around Bitcoin and blockchain innovation. The bonds will debut on the Bitfinex Securities trading platform, which will be in control of the country’s entrance into Bitcoin-backed capital markets under the direction of President Nayib Bukele, who has been an avid crypto advocate.
The Bond is expected to yield an annual return of 6.5% to investors over ten years. The plan is to utilize El Salvador’s plentiful volcanic resources to power mining operations. Additionally, Luxor Technology will be partnered with in this endeavor, and bond repayment will be supported by the mining yield. The regulatory clearance obtained moves the entire plan one step closer to execution. Additionally, the nation has disclosed the existence of a $1 billion Bitcoin mining project that utilizes the geothermal potential of the nation. When combined, these initiatives demonstrate El Salvador’s dedication to national innovation and cryptocurrency adoption.
By securing outside funding support through the pioneering Volcano Bonds, El Salvador can continue progressing with Bitcoin integration across governmental services and society. A statement by The National Bitcoin Office (ONBTC) also confirmed that it is expected to be launched by the first quarter of 2024.
🚨BREAKING NEWS🚨
The Volcano Bond has just received regulatory approval from the Digital Assets Commission (CNAD).
We anticipate the bond will be issued during the first quarter of 2024.
This is just the beginning for new capital markets on #Bitcoin in El Salvador.
🇸🇻🌋🚀
— The Bitcoin Office (@bitcoinofficesv) December 12, 2023
El Salvador Continues to Take the Lead with Crypto Innovation and Development
Recently, El Salvador made headlines by unveiling a freedom visa program that offers individuals who invest in Bitcoin and USDT the chance to obtain citizenship in the country. The program, however, sparked mixed reactions due to its requirement of a $1 million investment. Despite the controversy, the program has already attracted over $150 million worth of investments, surpassing the available spots of 1,000 for the year.
In addition to the visa program, El Salvador has been actively demonstrating its support for cryptocurrencies. The initial announcement about the issuance of Volcano Bonds was made in November 2021, with the country’s finance minister, Alejandro Zelaya, stating that they would be launched in March 2022, although that did not materialize. Subsequently, there were a few postponements. Nevertheless, the recent launch of the bonds reflects the unwavering determination of the country to introduce crypto-related solutions.
Many cryptocurrency experts will be monitoring El Salvador’s Bitcoin-related actions to see how profitable they can become for the nation. If it is successful, it might serve as a springboard for other nations to try out more crypto-related ideas, which would ultimately aid in increased adoption and the development of fresh solutions.