El Salvador’s Bitcoin “Volcano Bonds” Set to Launch in 2024
The National Bitcoin Office (ONBTC) has announced that El Salvador’s Bitcoin “volcano bonds” have received regulatory approval from the Digital Assets Commission. The bonds are scheduled to be launched in the first quarter of 2024. With a duration of ten years, these bonds offer investors an annual return of 6.5%.
President Bukele Confirms Bond Launch
President Nayib Bukele, a strong proponent of Bitcoin, confirmed the approval of the volcano bonds in a social media post. He also shared multiple posts indicating that the bonds would be issued in Q1 2024.
Bonds Aim to Alleviate Sovereign Debt and Fund Bitcoin City
The volcano bonds initiative was introduced by President Bukele in November 2021, following the recognition of Bitcoin as legal tender in El Salvador. These bonds are intended to address sovereign debt concerns and finance the construction of “Bitcoin City.”
Bitfinex Securities Platform to Facilitate Bond Issuance
The volcano bonds will be issued on the Bitfinex Securities Platform, a blockchain-based trading platform registered in El Salvador. This platform specializes in trading equities and bonds.
Establishing Bitcoin-Centric Capital Markets
The launch of the volcano bonds marks a significant milestone in establishing Bitcoin-centric capital markets in El Salvador. It demonstrates the country’s commitment to embracing digital currencies and leveraging its volcanic energy for cryptocurrency mining activities.
Hot Take: El Salvador Pioneering Bitcoin Integration
El Salvador continues to lead the way in integrating Bitcoin into its financial ecosystem. From recognizing it as legal tender to launching Bitcoin mining ventures and introducing residency programs for Bitcoin investors, the country is making bold moves to position itself as a global hub for cryptocurrency innovation. The volcano bonds initiative is another testament to El Salvador’s commitment to embracing the potential of digital currencies and leveraging them for economic growth.
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