- Regulatory Approval: The Digital Assets Commission’s endorsement signals a crucial step towards the launch of Bitcoin-backed bonds in El Salvador.
- Bitcoin-Centric Initiatives: The country’s vision includes fostering a sustainable Bitcoin mining ecosystem and attracting investors through innovative programs like the “Freedom VISA.”
El Salvador’s ambition for Bitcoin-driven financial instruments has progressed significantly, with regulatory approval secured for the launch of the world’s inaugural Bitcoin bonds anticipated in the first quarter of 2024. The national Bitcoin office in El Salvador announced the achievement via social media platform X, signalling a crucial step towards the issuance of what’s been dubbed “Volcano bonds.”
🚨BREAKING NEWS🚨
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.
🇸🇻🌋🚀
— The Bitcoin Office (@bitcoinofficesv) December 12, 2023
Regulatory Milestone: Volcano Bonds Receive Nod for Q1 2024 Launch
In a significant breakthrough, El Salvador’s proposed Bitcoin bonds, known as Volcano bonds, have received the critical approval of the Digital Assets Commission (CNAD), marking a pivotal moment in the country’s crypto-focused financial landscape. The bonds are slated to debut on Bitfinex Securities, a regulated arm of the cryptocurrency exchange Bitfinex.
The announcement on X, amplified by President Nayib Bukele, revealed the impending issuance set for the first quarter of 2024.
The Journey of El Salvador’s Bitcoin Bonds and Regulatory Milestones
El Salvador’s Bitcoin bonds, a brainchild of President Nayib Bukele, were initially unveiled in 2021 following the nation’s groundbreaking decision to embrace Bitcoin as legal tender. To raise $1 billion, these bonds are designed to fuel a Bitcoin mining ecosystem exclusively powered by renewable energy sources, including harnessing the energy generated by the country’s active volcanoes.
The road to regulatory approval faced delays despite the initial plan for issuance in March 2022. However, the bill concerning digital assets made its long-awaited debut in the Legislative Assembly by the end of November 2022, securing favour among the majority-held Nuevas Ideas party led by President Bukele. The law witnessed a resounding vote in favour, with 62 legislators supporting it while 16 opposed it, finally passing in January 2021.
This latest development follows closely on the heels of another significant move by El Salvador towards Bitcoin-centric initiatives. The launch of the “Freedom VISA” program marks a progressive step, offering residency to a select 1,000 individuals annually, provided they invest a minimum of $1 million in Bitcoin or tether (USDT) stablecoins.