El Salvador Bitcoin Bonds Receive Regulatory Approval and Will Launch in 2024

El Salvador 1
  • El Salvador’s Digital Assets Commission approves Bitcoin bonds
  • The first Bitcoin bonds are expected to be issued in the first quarter of 2024
  • Bukele seemed to confirm the launch schedule of the so-called “volcano bonds”

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El Salvador’s highly anticipated Bitcoin bonds are closer to seeing the light of day after gaining regulatory approval.

In a publication on Monday, El Salvador’s National Bitcoin Office reported that Bitcoin bonds, also called “Volcano bonds” obtained the go-ahead from the Digital Assets Commission (CNAD) for early issuance in early 2024.

The Volcano Bonus has just received regulatory approval from the Digital Assets Commission (CNAD). We anticipate the bond will be issued during the first quarter of 2024. 

Bitcoin bonds were originally announced in 2021 by President Nayib Bukele shortly after the Central American nation passed a law to make Bitcoin its legal tender.

Bukele’s goal was to raise USD 1 billion through bonds backed by bitcoins, money that would be used to boost Bitcoin mining operations based on renewable energy, including that generated by the country’s active volcanoes, create the “Bitcoin City” project and invest in Bitcoin to add to the national treasury.

Initially, their issuance was scheduled for the first quarter of 2022, but it was postponed several times, in part due to the lack of an accompanying regulatory framework. However, in January, lawmakers passed the digital assets bill that provides the legal framework for the Bitcoin-backed bond.

The world’s  first Bitcoin bonds are born

Bukele appeared to confirm the regulatory approval of the Bitcoin bonus by the CNAD. On social networks, he made a series of publications. “When will the volcano bonus?“, He wrote in one before sharing other publications in which he suggests that said bonds would be issued in the first quarter of 2024.

El Salvador’s National Bitcoin Office said the bonds will be issued on the Bitfinex Securities Platform, a Blockchain-based stock and bond trading site registered in the country. Bitfinex, a well-known cryptocurrency exchange, has been working with the local government for some time on the issuance of these bonds.

The milestone marks the beginning of Bitcoin-based capital markets in the country, with bonds that will last 10 years and pay an annual return of 6.5% to their holders, as highlighted by Cointelegraph.

This is the Central American nation’s latest Bitcoin-focused effort in recent weeks. A few days ago, El Salvador launched a new visa program “Freedom Visa” that grants residency to investors of Bitcoin and the stablecoin Tether (USDT).