El Salvador is set to make history with the launch of the world’s first Bitcoin bonds, tentatively scheduled for the first quarter of 2024. This move comes after the bonds received regulatory approval, signaling a significant advancement in the country’s commitment to integrating Bitcoin into its financial infrastructure.
On social platform X, the National Bitcoin Office of El Salvador shared that the Digital Assets Commission (CNAD) had granted regulatory approval for the so-called “Volcano bonds.” This development was further echoed by President Nayib Bukele on X, who reposted several messages indicating the bond issuance in Q1 2024.
Initially announced in 2021 by President Bukele, these bonds follow his historic move of recognizing Bitcoin (BTC) as legal tender in El Salvador. The goal of the Volcano bonds is to raise $1 billion to support the development of a Bitcoin mining industry powered entirely by renewable energy, including geothermal energy from the country’s active volcanoes.
The bond issuance was initially planned for March 2022 but faced multiple postponements. The digital assets bill, pivotal for this initiative, was introduced in the Legislative Assembly at the end of November 2022. The bill passed in January 2021, with Bukele’s party, Nuevas Ideas, holding a substantial majority. It received 62 votes in favor and 16 against.
The bonds will be offered on Bitfinex Securities, a regulated division of the crypto exchange Bitfinex.
This step is part of a series of Bitcoin-centric initiatives by El Salvador. Recently, the country launched the “Freedom VISA” program, offering residency to up to 1,000 people annually who invest a minimum of $1 million in Bitcoin or Tether (USDT) stablecoins.
El Salvador’s move to issue Bitcoin bonds reflects its pioneering stance in embracing digital currencies and its ambition to become a cryptocurrency innovation and investment hub.