The long-awaited Bitcoin bonds of El Salvador, also known as ‘Volcano Bonds’, have reportedly received regulatory approval for launch in early 2024.
The Volcano Bond has been approved by the El Salvador Digital Asset Commission and is expected to be launched during the first quarter of 2024, according to a statement from the National Bitcoin Office on December 11.
The pro-Bitcoin state leader Nayib Bukele also seemingly confirmed the news in his own announcement, while also reiterating several posts noting that the bonds will be issued in the first quarter of 2024.
The possibility for the country to issue Volcano Bonds first emerged in November 2021. El Salvador passed significant legislation on January 11 that provides a legal framework for Bitcoin-backed bonds. The Volcano Bond is intended for repaying state debt and financing the construction of the proposed ‘Bitcoin City’ in the country.
The country’s National Bitcoin Office stated that the bond will be issued on the Bitfinex Securities platform, a trading venue for blockchain-based stocks and bonds registered in El Salvador.
This signals the beginning of a Bitcoin-based capital market in the country, with bonds that will last 10 years and pay a 6.5% annual return to owners.
El Salvador recently launched a $1 billion Bitcoin mining project of 241 megawatts that will utilize the country’s volcanic resources through a partnership with Luxor Technology. Conchagua is the name of the volcano that will power the mining operations in the country.
The approval comes nearly 21 months after the country’s former finance minister, Alejandro Zelaya, stated that the Volcano Bond would be launched in mid-March 2022.
