El Salvador Advances in Crypto Finance with Launch of Groundbreaking Bitcoin Bonds
The journey of El Salvador towards becoming a trailblazer in the cryptocurrency realm has taken a significant leap forward. The nation’s ambitious bitcoin (BTC) bond project, a plan that has been in the works for some time, is now set to become a reality. Official approval for the issuance of these innovative bonds, expected to debut in the early months of 2024, was announced by El Salvador’s dedicated bitcoin office on a recent Tuesday.
These pioneering bonds, dubbed “Volcano Bonds,” are slated for release on Bitfinex Securities, a division of the Bitfinex crypto exchange, known for its regulatory compliance. El Salvador’s National Bitcoin Office, through its official social media handle, expressed its enthusiasm: “The Volcano Bond has just received regulatory approval from the Digital Assets Commission (CNAD). We’re looking forward to its issuance in the first quarter of 2024.”
The concept of the Volcano Bonds was first brought to the public’s attention in 2021 by President Nayib Bukele, aligning with his move to recognize bitcoin (BTC) as legal tender in El Salvador. Bukele’s vision encompasses raising $1 billion through these bitcoin-backed bonds to foster a bitcoin mining ecosystem powered entirely by renewable energy sources, including the geothermal energy harnessed from the nation’s active volcanoes.
Though initially scheduled for a March 2022 launch, the bonds faced several delays. The long-awaited digital assets bill, pivotal to this project, was introduced to the Legislative Assembly in late November 2022. The ruling party, Nuevas Ideas, which holds significant influence in the Assembly, facilitated the passage of this legislation. In a recent vote, 62 legislators supported the bill against 16 opposing it, leading to its final passage in January 2021.
This development marks El Salvador’s second major stride in bitcoin integration within a short span. The country recently initiated its “Freedom VISA” program, offering residency to up to 1,000 individuals per year who invest a minimum of $1 million in bitcoin or tether (USDT) stablecoins.
These steps by El Salvador underscore its commitment to integrating cryptocurrency into its economic framework, positioning the nation as a pioneer in leveraging digital assets for economic growth and innovation.
