El Salvador to Debut Bitcoin “Volcano Bonds” in 2024

El Salvador, a pioneering country in the use of cryptocurrencies, is set to debut its much-awaited Bitcoin “Volcano Bonds” at the beginning of 2024. This move follows the government’s groundbreaking decision to accept Bitcoin as legal tender and marks a significant milestone in the country’s ongoing acceptance of digital currency.

The “Volcano Bonds,” which have received legal approval from the Digital Assets Commission of El Salvador, are scheduled to be released in the first quarter of 2024. On December 11, the National Bitcoin Office (ONBTC) of El Salvador confirmed the accuracy of this information. Despite facing regulatory obstacles, the bonds, initially planned for release in March 2022, have finally overcome these hurdles.

President Nayib Bukele of El Salvador has been a strong advocate of Bitcoin throughout his tenure. He firmly believes in the potential benefits it can bring to the nation’s financial system. Bukele has used social media platforms to announce the upcoming issuance of the “Volcano Bonds,” showcasing his commitment to incorporating Bitcoin into the country’s economic landscape.

The primary purpose of issuing the Volcano Bonds is to address El Salvador’s national debt and fund the creation of the ambitious “Bitcoin City.” This initiative is a crucial part of El Salvador’s plan to leverage cryptocurrencies for economic development and innovation. The bonds will be issued on the Bitfinex Securities Platform, a blockchain-based trading platform established in El Salvador. Investors can expect a 6.5% annual return over a ten-year period.

In line with these efforts, El Salvador has recently launched the “Volcano Energy” Bitcoin mining project, worth one billion dollars. The project, developed in partnership with Luxor Technology, utilizes the country’s volcanic resources to generate power. This initiative exemplifies El Salvador’s commitment to harnessing its natural resources for technological advancement and economic growth.