El Salvador is expected to introduce its long-awaited Bitcoin “volcano bond” in early 2024. El Salvador is a pioneering country in the use of cryptocurrency. The move comes after the government’s pioneering decision to accept Bitcoin as legal cash, an important milestone in the country’s continued acceptance of digital currencies.
‘Volcano Bonds’, legally approved by El Salvador’s Digital Assets Commission, are targeted for distribution in the first quarter of 2024. On December 11, El Salvador’s National Bitcoin Office (ONBTC) certifies that the information is accurate. This bond, which was scheduled to be launched in March 2022, has been delayed and has finally succeeded in overcoming the regulatory hurdles essential to its launch.
El Salvador’s President Nayib Bukele has been a staunch advocate of Bitcoin and the potential benefits it could bring to the country throughout his term. His commitment to integrating Bitcoin into the country’s financial system was highlighted through social media posts, which confirmed that a bond issuance was imminent.
Volcano bonds are being issued with the primary purpose of resolving El Salvador’s national debt and financing the construction of a envisioned “Bitcoin city.” This ambitious effort is an important component of El Salvador’s plan to harness the power of cryptocurrencies for the purpose of promoting economic development and innovation. The bonds will be issued on the Bitfinex Securities Platform, a blockchain-based trading platform built in El Salvador. This bond provides a return of 6.5% per year for 10 years.
In line with these efforts, El Salvador recently launched “Volcano Energy,” a $1 billion Bitcoin mining project developed in partnership with Luxor Technology. This project, which uses the country’s volcanic resources for the purpose of generating electricity, demonstrates El Salvador’s commitment to using its natural resources to promote technological advancement and economic growth.
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