The Volcano Bitcoin Bonds Are Approved in El Salvador
The National Bitcoin Office of El Salvador has announced that the Volcano Bond has received regulatory approval from the Digital Assets Commission. The bonds are expected to be issued in the first quarter of 2024. They will be listed on the Bitfinex Securities platform regulated by Kazakhstan and El Salvador.
El Salvador’s Bitcoin Volcano Bonds
El Salvador revealed its plans for Bitcoin volcano bonds in 2021 after making Bitcoin legal tender. The goal is to raise $1 billion through these bonds, which will be backed by Bitcoin and supported by renewable energy from active volcanoes used for BTC mining in the country.
Delayed Launch and Regulatory Approval
The initial launch of the bonds was planned for March 2022 but was delayed due to market conditions. However, with the passing of crypto legislation in November 2022, regulatory approval became possible. The bonds will now be issued in early 2024 with a ten-year duration and an annual return of 6.5% for holders.
El Salvador’s Freedom Visa and Citizenship Program
El Salvador recently introduced a Freedom Visa and Citizenship program aimed at attracting visionary contributors to the country’s economic development. However, this program is only available to high-net-worth individuals who must invest $1 million in BTC or USDT to obtain the visa and citizenship.
Bukele’s BTC Investments
President Nayib Bukele has been accumulating BTC since September 2021, and El Salvador currently holds 2,770 BTC worth around $115 million. However, due to purchasing during the bull market, the portfolio has been underwater until recently when Bitcoin prices reached $44,000.
Hot Take: El Salvador Continues to Embrace Crypto
El Salvador’s approval of the volcano Bitcoin bonds demonstrates its commitment to integrating cryptocurrencies into its financial system. The bonds, backed by renewable energy from volcanoes, offer an attractive investment opportunity for both domestic and international investors. With President Nayib Bukele’s continued support for BTC and initiatives like the Freedom Visa program, El Salvador is positioning itself as a leading pro-crypto nation.
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