The Digital Assets Commission has given the green light for El Salvador’s Volcano Bitcoin Bonds, which will be supported by the country’s Bitcoin mining industry powered by environmentally friendly volcanic energy sources. Initially planned for release in March 2022, the bonds faced a delay.
Since 2021, President Nayib Bukele of El Salvador has invested more than $120 million of the country’s funds in buying Bitcoin. Now, the regulatory authorities have given the green light for the country’s “Volcano Bonds,” and they are scheduled to be introduced in early 2024.
El Salvador’s Volcano Bonds: Regulatory Approval and Launch
El Salvador’s “Volcano Bond” has reportedly gained approval from the Digital Assets Commission, setting the stage for its anticipated launch in the first quarter of 2024, as announced by The National Bitcoin Office (ONBTC) on December 11.
🚨BREAKING NEWS🚨
The Volcano Bond has just received regulatory approval from the Digital Assets Commission (CNAD).
We anticipate the bond will be issued during the first quarter of 2024.
This is just the beginning for new capital markets on #Bitcoin in El Salvador.
🇸🇻🌋🚀
— The Bitcoin Office (@bitcoinofficesv) December 12, 2023
President Nayib Bukele seemed to confirm the news in his own post, playfully asking, “Wen volcano bond?” and reposting messages indicating a Q1 2024 issuance.
Wen volcano bond? 🥺
— Nayib Bukele (@nayibbukele) December 12, 2023
El Salvador is set to launch Volcano Bonds, a Bitcoin-backed financial instrument, in early 2024 after gaining regulatory approval from the Digital Assets Commission. The bonds aim to address sovereign debt and finance the development of the country’s proposed “Bitcoin City.”
President Nayib Bukele invested over $120 million in Bitcoin with public funds since 2021. The bonds, to be issued on the Bitfinex Securities Platform, represent the beginning of Bitcoin-based capital markets in El Salvador. The 10-year Volcano Bonds offer a 6.5% annual return and are part of El Salvador’s broader embrace of Bitcoin.
We found the Volcano 🌋 Bonds. Will be available soon!!! pic.twitter.com/cUxfhhoCRn
— Bitcoin Beach (@Bitcoinbeach) December 12, 2023
The regulatory approval for El Salvador’s Volcano Bonds comes approximately 21 months after the country’s former finance minister, Alejandro Zelaya, initially suggested a mid-March 2022 launch for the Volcano Bond.
Bukele’s Bitcoin Investments Turn Profitable Amid Controversy
El Salvador’s former President Nayib Bukele invested public money to buy Bitcoin, and recently, the value of his 2,764 Bitcoins increased. With Bitcoin prices rising, if he sells at the current rate of $44,000 per coin, he could make over $4 million.
A website tracking Bukele’s Bitcoin portfolio shows this profit, based on his tweets about each purchase. Bukele’s decision to step down as president and campaign for a second term has caused controversy. However, some economists argue that the profits from Bitcoin don’t outweigh the $120 million spent promoting it in El Salvador.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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