In a significant development, El Salvador’s long-anticipated Bitcoin bonds, dubbed ‘Volcano Bonds,’ are reportedly nearing fruition after securing regulatory approval for an expected issuance in the first quarter of 2024. The announcement, shared by El Salvador’s National Bitcoin Office on the social platform X, indicates that the bonds will be offered on Bitfinex Securities, a regulated arm of the crypto exchange Bitfinex.
🚨BREAKING NEWS🚨— The Bitcoin Office (@bitcoinofficesv) December 12, 2023
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.
President Nayib Bukele, a vocal proponent of Bitcoin, seemingly confirmed the regulatory approval through X, reposting messages that hinted at the Q1 2024 launch. The “Volcano Bonds” were initially introduced in 2021 shortly after El Salvador recognized Bitcoin as legal tender. President Bukele’s vision is to raise $1 billion through these Bitcoin-backed bonds, fostering a bitcoin mining industry powered entirely by renewable energy, including that generated by the country’s active volcanoes. While the issuance was initially slated for March 2022, it faced multiple delays. However, with the digital assets bill introduced in the Legislative Assembly at the end of November 2022, the prospects for the “Volcano Bonds” have gained momentum, especially with President Bukele’s party, Nuevas Ideas, holding a significant majority in the assembly.