After nearly a two-year delay, El Salvador’s long-awaited Bitcoin Volcano Bond has finally received the nod and is poised for issuance in the first quarter of 2024.
The National Bitcoin Office (ONBTC) of the country confirmed on Tuesday via Twitter/X that the Digital Asset Commission had granted approval for the bond, marking the dawn of new capital markets around #Bitcoin in El Salvador. The bond is slated for release on the Bitfinex Securities Platform.
This development arrives after multiple earlier attempts faced obstacles. Initially unveiled by Bukele in 2021, named after a plan to utilize geothermal energy from a volcano for Bitcoin mining, the Volcano Bond encountered delays, including a postponement in early 2022 amid crypto price drops. Following subsequent delays, El Salvador’s congress established a legal framework for the bond in January.
The successful launch of the bond could assist the Central American nation in avoiding debt defaults, despite the International Monetary Fund’s persistent urging for El Salvador to remove Bitcoin as a legal currency. Additionally, the nation is exploring new revenue streams by proposing citizenship for investors spending $1 million on Bitcoin.
The Volcano Bond remains a pivotal project championed by Bukele, who spearheaded Bitcoin’s legal tender status. Funds raised through the bond are earmarked for the development of a “Bitcoin city” and investments in Bitcoin itself. Bukele recently claimed, without substantiation, that the nation’s current Bitcoin holdings are now yielding profits, as announced on X.
Bitcoin’s price, after reaching a 20-month peak last week, has since retreated to approximately $41,300 as of Tuesday morning.
