El Salvador’s ‘Volcano Bond’: One step closer to the world’s first Bitcoin-backed security
- Regulatory Approval: Approval from the Digital Assets Commission marks a significant step toward launching Bitcoin-backed bonds in El Salvador.
- Bitcoin-Focused Initiatives: The country’s vision includes fostering a sustainable Bitcoin mining ecosystem and attracting investors through innovative programs such as “Freedom VISA.”
El Salvador’s ambitions for Bitcoin-based financial products have taken a major step forward with the country securing regulatory approval for the launch of the world’s first Bitcoin bond, expected in the first quarter of 2024. El Salvador’s Bitcoin Country Office announced this achievement through social media platform X. This represents an important step towards the issuance of ‘volcano bonds’.
🚨Breaking News🚨
Volcano Bond has received regulatory approval from the Commission on Digital Assets (CNAD).
The bonds are expected to be issued in the first quarter of 2024.
This is just the beginning of a new capital market. #Bitcoin In El Salvador.
🇸🇻🌋🚀
— Bitcoin Office (@bitcoinofficesv) December 12, 2023
Regulatory Milestone: Volcano Bonds Receive Approval for Launch in Q1 2024
El Salvador’s proposed Bitcoin bond, known as the Volcano Bond, has received important approval from the Commission on Digital Assets (CNAD), marking a pivotal moment in El Salvador’s cryptocurrency-centric financial landscape. The bond will be listed on Bitfinex Securities, a regulated entity of cryptocurrency exchange Bitfinex.
President Nayib Bukele’s announcement of the expanded
El Salvador’s Journey of Bitcoin Bonds and Regulatory Milestones
El Salvador’s Bitcoin bond, designed by President Nayib Bukele, was first unveiled in 2021 following the country’s landmark decision to adopt Bitcoin as fiat currency. To raise $1 billion, the bond is designed to fuel a Bitcoin mining ecosystem powered solely by renewable energy sources, including harnessing energy generated by the country’s active volcanoes.
Despite initial plans for issuance in March 2022, the path to regulatory approval has faced delays. However, the bill on digital assets made its long-awaited debut in the Legislative Council in late November 2022, winning the support of majority-holding Nuevas Ideas. It is a political party led by President Bukele. The law received an overwhelming vote, with 62 lawmakers supporting it and 16 opposing it, and was finally passed in January 2021.
This latest development closely follows another significant move by El Salvador towards Bitcoin-centric initiatives. The launch of the “Freedom VISA” program is a progressive step, providing residency to selected individuals if they invest at least $1 million in 1,000 people each year. Bitcoin or Tether (USDT) Stablecoin.