El Salvador’s Bitcoin bond gets regulatory approval, targets Q1 launch
The Volcano Bond was approved by the country’s Digital Assets Commission on Dec. 11, with issuance expected in Q1 2024.
2899 Total views 19 Total shares Listen to article El Salvador’s long-anticipated Bitcoin bonds, also known as “Volcano Bonds,” have reportedly received the regulatory nod for a launch in early 2024. The Volcano Bond was reportedly approved by El Salvador’s Digital Assets Commission and is anticipated to launch during the first quarter of 2024, according to a Dec. 11 statement from The National Bitcoin Office (ONBTC).
The country’s pro-Bitcoin (BTC) leader Nayib Bukele also seemingly confirmed the news in a post of his own, captioned: “Wen volcano bond,” while also reposting several posts noting that the bonds will be issued in Q1 2024.
The possibility of the country issuing the Volcano Bonds first came about in November 2021.
El Salvador first passed the landmark legislation providing the legal framework for the Bitcoin-backed bond on Jan. 11. The Volcano Bond is intended to pay down sovereign debt and fund the construction of the country’s proposed “Bitcoin City.”
The ONBTC said the bond will be issued on Bitfinex Securities Platform, a trading site for blockchain-based equities and bonds registered in El Salvador.
It signals the beginning of Bitcoin-based capital markets in the country, with the bonds set to last 10 years and pay 6.5% in annual return to holders.
El Salvador recently launched a 241-megawatt Bitcoin mining project worth $1 billion, which will tap into the country’s volcanic resources through a partnership with Luxor Technology. Conchagua is the name of the volcano that will power the country’s mining operations.
The approval comes nearly 21 months after the country’s former finance minister, Alejandro Zelaya, said the Volcano Bond would launch in mid-March 2022.