El Salvador’s ambitious Bitcoin bond offering has cleared a major hurdle towards reality. The so-called “Volcano Bond, was” announced in 2021 as part of the country’s pro-Bitcoin push. It is now poised to debut in early 2024 after securing regulatory approval this week.
El Salvador’s National Bitcoin Office (ONBTC) revealed on December 11th that the Volcano Bond was recently greenlit by the nation’s Digital Assets Commission (CNAD). ONBTC expects the bond will launch in Q1 2024. “We anticipate the bond will be issued during the first quarter of 2024.”
Nayib Bukele asks when volcano bond?
President Nayib Bukele, a vocal Bitcoin bull, appeared to confirm the news in a cryptic social media post asking, “Wen volcano bond?”
Initially proposed for a March 2022 issuance, delays cast doubt on whether the Bitcoin bond would ever materialize. However, with legal pathways now cleared and a reputable platform secured for offering the bond, El Salvador seems poised to make history once again in its embrace of cryptocurrency.
ONBTC announced that the Volcano Bond will be offered via Bitfinex Securities, the regulated digital asset investment arm of leading crypto exchange Bitfinex. The bond aims to raise $1 billion to help finance Bitcoin City, the planned hub for Bitcoin mining and adoption that El Salvador is developing.
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The Volcano Bond represents the next phase of the country’s pro-Bitcoin experiment. El Salvador recently began harnessing its volcanoes’ geothermal energy to power Bitcoin mining. President Bukele’s administration expects the greener mining initiative to deliver lasting economic gains despite crypto market turmoil.
With the regulatory roadblocks behind it, ONBTC can now finalize preparations to bring the volcano bond to market next year.