El Salvador has made a significant leap in the cryptocurrency world with its highly anticipated Bitcoin bonds, colloquially termed “Volcano Bonds,” receiving regulatory approval for a first-quarter 2024 launch. This development follows El Salvador’s earlier groundbreaking move to recognize Bitcoin as legal tender, underlining its commitment to integrating cryptocurrency into its financial ecosystem.
🚨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
The significance of the Volcano bonds
- Purpose and goal: Introduced by President Nayib Bukele in 2021, the Volcano Bonds aim to raise $1 billion. This initiative is a part of a broader strategy to harness Bitcoin in addressing sovereign debt obligations and financing the development of the proposed “Bitcoin City” in El Salvador.
- Energy-efficient Bitcoin mining: Central to this endeavor is the establishment of a Bitcoin mining industry powered solely by renewable energy sourced from the country’s active volcanoes. This innovative approach aligns with global trends towards sustainable and environmentally friendly practices in cryptocurrency mining.
Implementation and regulatory framework
- Digital Assets Commission Approval: The Digital Assets Commission (CNAD) of El Salvador has granted approval for the Volcano Bond. The National Bitcoin Office (ONBTC) of El Salvador confirmed this development, marking a significant milestone in the country’s digital asset ventures.
- Bitfinex Securities Platform: The bonds are expected to be offered on Bitfinex Securities, a regulated division of the crypto exchange Bitfinex. This platform is a registered trading site for blockchain-based equities and bonds in El Salvador, providing a secure and regulated environment for the issuance of these innovative financial instruments.
Small nation, big vision
El Salvador’s economic trajectory is poised for a significant transformation with the introduction of groundbreaking initiatives. Chief among them is the issuance of Volcano Bonds, earmarked to fuel the development of Bitcoin City, a visionary project designed to become a global epicenter for cryptocurrency innovation and economic prosperity.
Wen volcano bond? 🥺
— Nayib Bukele (@nayibbukele) December 12, 2023
Anticipated to lure international investment and talent, Bitcoin City promises to usher in a new era of technological advancement within El Salvador’s borders. Complementing this endeavor is the launch of a monumental $1 billion Bitcoin mining project, known as “Volcano Energy.” Supported by Tether and in collaboration with Luxor Technology, this initiative seeks to establish a robust 241 MW generation park in Metapán, dedicated to Bitcoin mining. These groundbreaking developments firmly establish El Salvador as a pioneering force in the cryptocurrency domain, with far-reaching implications for its economy.