El Salvador approves launch of Bitcoin volcano bonds for Q1 2024

El Salvadorโ€™s Bitcoin โ€œvolcano bondsโ€ are set to be launched in early 2024 following reported regulatory approval.

The National Bitcoin Office (ONBTC) announced on Dec. 11 that the bonds had received approval from El Salvadorโ€™s Digital Assets Commission, with a planned release in Q1 of 2024.

The bonds, with a ten-year duration, offer an annual return of 6.5% to investors.

President Nayib Bukele, a vocal advocate of Bitcoin, echoed this development in an X post captioned โ€œWen volcano bond,โ€ and additionally shared multiple posts indicating the issuance of the bonds in Q1 2024.

The so-called โ€œvolcano bondsโ€ initiative was unveiled by Bukele in November 2021, shortly after he passed a law recognizing Bitcoin (BTC) as legal tender in the country.

These bonds aim to alleviate sovereign debt and finance the construction of the countryโ€™s proposed โ€œBitcoin City.โ€

The ONBTC also noted that the bond would be issued on the Bitfinex Securities Platform, a blockchain-based trading platform for equities and bonds registered in El Salvador.

The introduction of these bonds marks a significant step towards establishing Bitcoin-centric capital markets in the nation.

El Salvador recently embarked on a $1 billion Bitcoin mining venture, utilizing a 241-megawatt capacity powered by the countryโ€™s volcanic energy. This project is a collaboration with Luxor Technology and will be fueled by the Conchagua volcano, which plays a central role in the nationโ€™s cryptocurrency mining activities.

Additionally, the country has recently launched the โ€œFreedom VISAโ€ program, which offers residency to individuals investing a minimum of $1 million in Bitcoin or tether (USDT) stablecoins. This initiative is capped at 1,000 people annually and represents another significant step in El Salvadorโ€™s embrace of digital currencies.


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