Volcano Bonds Expected to Launch in Q1 2024
After receiving regulatory approval in El Salvador, the National Bitcoin Office has announced that the launch of Volcano Bonds is anticipated in Q1 2024. These digital debt instruments will be used to finance the development of Bitcoin City.
The Bitcoin Office revealed that the Volcano Bond has obtained approval from the Digital Assets Commission, marking the beginning of new capital markets for bitcoin in the country.
Stacy Herbert, director of the Bitcoin office, stated that they are currently determining the size of the bond offer, which is expected to be around $1 billion.
Establishing New Capital Markets in Bitcoin
The Bitcoin Office aims to develop new capital markets in bitcoin by issuing the first sovereign bond backed by the cryptocurrency. According to Herbert, this will pave the way for future investment opportunities.
The bonds will be issued through Bitfinex Securities, a company that has been approved as a digital assets service provider in El Salvador. Blockstream’s Liquid network will be used for the issuance process.
Delays and Regulatory Framework Challenges
The issuance of Volcano Bonds has faced delays, primarily due to the absence of a regulatory framework for digital securities in El Salvador. Bitfinex CTO Paolo Ardoino acknowledged this obstacle and indicated that it would take a few more months to ensure full compliance with the law.
Despite the setbacks, President Nayib Bukele remains committed to the vision of Bitcoin City, which will be funded by the proceeds from the Volcano Bonds.
Hot Take: El Salvador’s Volcano Bonds Prepare to Fuel Bitcoin City’s Development
The approval of the regulatory framework for digital debt instruments in El Salvador has rekindled discussions about the anticipated launch of Volcano Bonds. With a projected launch date in Q1 2024, these bonds will finance the creation of Bitcoin City. The National Bitcoin Office, responsible for overseeing bitcoin projects in the country, expects the bond offer to reach $1 billion. By tapping into new capital markets in bitcoin, El Salvador aims to establish itself as a leading player in the cryptocurrency ecosystem. As the government and investors eagerly wait for the launch of Volcano Bonds, the future of Bitcoin City hangs in the balance, marking an important milestone in the country’s journey towards embracing digital currency.
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