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El Salvador approves launch of Bitcoin volcano bonds for Q1 2024
El Salvador’s Bitcoin “volcano bonds” 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 Salvador’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 “Wen volcano bond,” and additionally shared multiple posts indicating the issuance of the bonds in Q1 2024.
The so-called “volcano bonds” 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 country’s proposed “Bitcoin City.”
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 country’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 nation’s cryptocurrency mining activities.
Additionally, the country has recently launched the “Freedom VISA” 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 Salvador’s embrace of digital currencies.