After nearly two years of delays, El Salvador’s Bitcoin Volcano Bond has been approved and could be issued as early as the first quarter of 2024.
The country's National Bitcoin Office, or ONBTC, said in a post to Twitter/X on Tuesday that the country’s Digital Asset Commission had approved the bond, triggering “the beginning for new capital markets on #Bitcoin in El Salvador.” The bond is set to be issued on the Bitfinex Securities Platform.
🚨BREAKING NEWS🚨
— The Bitcoin Office (@bitcoinofficesv) December 12, 2023
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.
🇸🇻🌋🚀
El Salvador President Nayib Bukele retweeted several news stories on X, claiming the bonds would be issued early next year. He also posted about the approval.
Wen volcano bond? 🥺
— Nayib Bukele (@nayibbukele) December 12, 2023
The news comes after several previous attempts to bring it to fruition had stalled. Bukele first announced the Volcano Bond, named after a plan to use geothermal energy from a volcano to power Bitcoin mining, in 2021, shortly after the nation adopted Bitcoin as legal tender.
The bond’s scheduled debut in early 2022 was postponed and then temporarily sidelined by the nation's finance minister as crypto prices plummeted. After several other delays, El Salvador’s congress passed a law in January that created a legal framework for the bond.
If successful, the bond could help the Central American nation avoid defaulting on its debt, although the International Monetary Fund has for years urged El Salvador to get rid of Bitcoin as a legal currency. The nation also is seeking new revenue by offering citizenship to investors who spend $1 million on Bitcoin.
The Volcano Bond is a key project for Bukele, who led the effort to designate Bitcoin as legal tender. Funds raised by the bond were designated for the creation of a “Bitcoin city” and for investments in Bitcoin itself. The nation's current holdings, Bukele recently announced on X, without citing evidence, are now profitable.
Since hitting a 20-month high last week, Bitcoin’s price has retreated to about $41,300 as of Tuesday morning.
