- El Salvador has made a big Bitcoin-focused move.
- The country’s regulator approved the much-anticipated Bitcoin Volcano Bonds.
- Issuance is set for early next year.
El Salvador’s ambitious and much-anticipated Bitcoin -backed bonds, popularly known as “Volcano Bonds,” have secured regulatory approval for early next year’s issuance.
The Latin American pro-crypto nation has been making Bitcoin-focused moves since 2021, when the country first adopted BTC as a legal tender . The latest development is a culmination of landmark legislation passed on January 11, establishing a legal framework for the BTC-backed bond.
El Salvador Bitcoin Bonds Receive Regulatory Approval
On December 11, the National Bitcoin Office (ONBTC) of El Salvador announced that the country’s Volcano Bond had received regulatory approval from the Digital Assets Commission (CNAD), marking the “beginning for new capital markets on Bitcoin.”
A few minutes after ONBTC’s announcement, President Nayib Bukele took to Twitter (X), seemingly confirming the news through a post that asked, “Wen volcano bond?” The president also reposted several other posts that highlighted the BTC bond approval.
Per the ONBTC announcement, the bonds will likely be issued during the first quarter of 2024.
The Bitcoin Volcano Bonds were first announced in 2021 when El Salvador approved BTC as a legal tender. While making the announcement, Bukele stated that his target was to raise $1 billion through the bonds, seeded by El Salvador’s renewable energy-powered BTC mining industry.
With the regulatory hurdles cleared, the ONBTC can fast-track preparations to bring the Volcano Bond to market for ten years at a 6.5% annual return.
Read how Bitcoin offers a gateway to El Salvador citizenship:
How Bitcoin Offers a Gateway to El Salvador Citizenship
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