Home Crypto News El Salvador Secures Regulatory Approval for Bitcoin Bond

El Salvador Secures Regulatory Approval for Bitcoin Bond

12 Dec, 2023 Crypto News

El Salvador Secures Regulatory Approval for Bitcoin Bond

According to reports, El Salvador's eagerly awaited Bitcoin bonds, dubbed "Volcano Bonds," have obtained regulatory approval for an early 2024 launch.

A Dec. 11 statement from The National Bitcoin Office (ONBTC) stated that the Volcano Bond was approved by El Salvador's Digital Assets Commission and is expected to launch during the first quarter of 2024.

Nayib Bukele, the nation's leading pro-Bitcoin (BTC) advocate, also appeared to confirm the news in a post he made, captioned "Wen volcano bond." He also reposted multiple posts indicating that the bonds will be issued in Q1 2024.

In November 2021, the prospect of the nation issuing Volcano Bonds first surfaced.

On January 11, El Salvador initially approved the historic legislation that established the legal parameters for the bond backed by Bitcoin.

The Volcano Bond is meant to finance the building of the nation's planned "Bitcoin City" as well as the repayment of sovereign debt.

According to the ONBTC, the bond will be sold on the Bitfinex Securities Platform, a marketplace for El Salvador-registered bonds and blockchain-based stocks.

With the bonds expected to mature in ten years and yield a 6.5% annual return to holders, it marks the start of Bitcoin-based capital markets in the nation.

Recently, El Salvador announced the start of a $1 billion, 241 megawatt Bitcoin mining project that will utilize the nation's volcanic resources in collaboration with Luxor Technology.

The volcano that will fuel the nation's mining operations is called Conchagua.

The approval was given almost 21 months after Alejandro Zelaya, the nation's former finance minister, announced that the Volcano Bond would launch in the middle of March 2022.

Sources:

https://cointelegraph.com/news/el-salvador-volcano-bond-regulatory-approval-targets-launch-q1-2024

https://twitter.com/Bitcoinbeach/status/1734383097020289246

https://twitter.com/nayibbukele/status/1734378704518750656

https://twitter.com/bitcoinofficesv/status/1734366450616336622

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