Key takeaways:
- The much-awaited “Volcano Bonds” from El Salvador are apparently set to debut in early 2024 after receiving regulatory approval.
- The bond will be issued on the Bitfinex Securities Platform, an El Salvador-registered trading platform for blockchain-based stocks and bonds.
The much-awaited “Volcano Bonds” from El Salvador, which are backed by Bitcoin, are apparently set to debut in early 2024 after receiving regulatory approval.
The National Bitcoin Office (ONBTC) released a statement on December 11, 2024, stating that the Volcano Bond was approved by El Salvador’s Digital Assets Commission and is expected to launch within the first quarter.
In a post titled “Wen volcano bond,” the nation’s leading pro-Bitcoin figure, Nayib Bukele, appeared to confirm the news as well. He also reposted many postings indicating that the bonds will be issued in Q1 2024.
In November 2021, the prospect of the nation issuing Volcano Bonds initially surfaced.
On January 11, El Salvador initially approved the historic law that established the legal parameters for the bond backed by Bitcoin. The Volcano Bond is meant to finance the building of the nation’s planned “Bitcoin City” as well as the repayment of national debt.
According to ONBTC, the bond will be issued on the Bitfinex Securities Platform, an El Salvador-registered trading platform for blockchain-based stocks and bonds.
With the bonds expected to mature in ten years and yield a 6.5% annual return to holders, it marks the start of Bitcoin-based capital markets in the nation.
Using its volcanic resources, El Salvador is set to mine Bitcoin for $1 billion with a 241-megawatt project that was just started in collaboration with Luxor Technology. The volcano responsible for supplying the nation’s mining industry is known as Conchagua.
About 21 months after Alejandro Zelaya, the nation’s previous finance minister, said that the Volcano Bond would go on sale in the middle of March 2022, the permission has already occurred.
President Nayib Bukele of El Salvador declared on December 5 that the nation’s contentious Bitcoin investments are now profitable, marking a dramatic change in the status of affairs. This announcement came after Bitcoin hit a record high of over $40,000, the highest level in more than a year.
