El Salvador’s Bitcoin bonds revive as BTC rises

President of El Salvador, Nayib Bukele – Credit: Wikimedia Commons – AndreX

Originally announced for 2021, the Volcano bonds wanted by Nayib Bukele could become a reality with a issue during the 1st quarter 2024. Visit bonds have been approved by the Digital Assets Commission from Salvador.

The President of El Salvador Nayib Bukele is behind the legalization of Bitcoin as a currency. The political leader also invested in the purchase of the token, a losing bet until recently.

To finance major projects, including that of a Bitcoin City, El Salvador planned to issue Bitcoin tokens. Bitcoin bondsalso known as Volcano Bonds. Presented in 2021, the project has been on hold ever since.

The Volcano bond has its regulatory stamp

El Salvador’s Bitcoin Bonds are now back. Thanks to the rise in the BTC price, the country’s crypto assets are recording a capital gain. Enough to make the initial project feasible.

And according to El Salvador’s National Bitcoin Office, the bonds could be issued soon.

The Volcano bond has just received regulatory approval from the Digital Assets Commission (CNAD),” the organization announces on X.

“We expect the bond to be issued in the first quarter of 2024,” he further clarifies.

Nayib Bukele largely supports this hypothesis. But will the project be as ambitious as the initial roadmap suggested?

El Salvador: a haven for crypto investors

The original goal was to raise $1 billion through bitcoin-backed bonds. In particular, this capital was to be used to finance the creation of a Bitcoin mining business based solely on renewable energies, including energy supplied by volcanoes. Hence the nickname Volcano Bond.

The bonds were due to be issued in March 2022. However, the Bitcoin price and the country’s negotiations with the IMF did not offer ideal conditions for such an initiative, which was therefore postponed several times.

With Bitcoin once again above the $40,000 mark, the ambitions of El Salvador’s president and his political majority are back on track. Just recently, the country announced its “Freedom VISA” program.

Its principle: to grant residency to a maximum of 1,000 people per year. The condition: to invest at least $1 million in bitcoins or USDT stablecoins. These residents could be the first inhabitants of Bitcoin City, the city project imagined by Bukele.

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