El Salvador ‘Volcano Bonds’ Set to Erupt in Q1 2024 After Regulatory Nod
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The groundbreaking move by El Salvador into the world of cryptocurrencies continues with the eagerly awaited approval of its bitcoin-backed bonds, named “Volcano bonds.” Today, the National Bitcoin Office confirmed the regulatory green light from the Digital Assets Commission (CNAD), paving the way for the bonds to debut on Bitfinex Securities in 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
President Nayib Bukele shared his enthusiasm on the crypto-friendly platform X, posing the question, “Wen volcano bond?” and amplifying the news through multiple posts. The Volcano bonds were initially unveiled in 2021, following El Salvador’s historic adoption of Bitcoin as legal tender. Designed to raise $1 billion, these bonds aim to fuel a sustainable bitcoin mining industry leveraging renewable energy sources, including geothermal power from the nation’s volcanoes.
FUN FACT: 🇸🇻 El Salvador mines #Bitcoin with 100% renewable energy from volcanoes 🌋 pic.twitter.com/qizHQUXm8A
— Bitcoin Magazine (@BitcoinMagazine) December 9, 2023
Originally slated for a March 2022 launch, the bonds encountered setbacks attributed to regulatory and technical hurdles. However, the turning point came in January 2023, when the Legislative Assembly passed the digital assets bill with a resounding 62 votes in favor and 16 against.
El Salvador Is Doubling Down on Its Bitcoin Moves
This move marks the latest in El Salvador’s pro-bitcoin initiatives, complementing the recent introduction of the “Freedom VISA” program. The program offers residency to individuals investing at least $1 million in bitcoin or tether, a stablecoin pegged to the US dollar, with an annual quota of 1,000 participants.
Announcing our new @AdoptingES program!
We're inviting all foreign investors to be part of our country's rebirth.
For more information, visit https://t.co/BJubsdIcFu
— Adriana Mira (@AdrianaMiraSV) December 7, 2023
While El Salvador’s bold embrace of Bitcoin has stirred both applause and skepticism globally, the country’s leadership remains resolute in pursuing its vision of utilizing Bitcoin as a catalyst for economic and social progress.
As the ‘Volcano bonds’ prepare for their much-anticipated launch, the world watches to see how El Salvador’s pioneering approach to cryptocurrency unfolds in the coming months.
