El Salvador plans to issue innovative 'Volcano Bonds' targeting Bitcoin investments starting in 2024.

El Salvador’s The unique Bitcoin investment bonds, known as 'Volcano Bonds,' have successfully passed the necessary regulatory checks and are set to launch in early 2024.

With approval granted on December 11, preparations are underway for the bonds to become available in the first quarter of next year.

Originally proposed in November 2021, the anticipation surrounding the Volcano Bonds has grown significantly within El Salvador. The National Bitcoin Office has confirmed their introduction in Q1 2024, echoing the President’s enthusiastic updates. ONBTC Regulatory approval for the Volcano Bond has just been secured from the Digital Assets Commission (CNAD).

🚨BREAKING NEWS🚨

We expect the bond offering to take place in the first quarter of 2024.

This is merely the beginning of new investment avenues available to the public.

— The Bitcoin Office (@bitcoinofficesv) #Bitcoin in El Salvador.

🇸🇻🌋🚀

The Volcano Bond is a crucial element of El Salvador’s innovative strategy to adopt Bitcoin, aimed at mitigating national debt while funding the construction of the ambitious 'Bitcoin City.' This initiative underscores the nation's dedication to entwining Bitcoin within its economic and developmental frameworks. December 12, 2023

Strategic Goals of El Salvador Bond

ONBTC has plans to launch the bond through the Bitfinex Securities Platform—a trading platform utilizing blockchain technology that operates out of El Salvador. This move highlights the country’s initiative to create a Bitcoin-centric capital market. Bitcoin Structured for a decade-long term, this bond is designed to provide an appealing annual yield of 6.5% to investors. This financial instrument represents a fresh method of deploying cryptocurrency within the framework of national economic planning.

In tandem with this bond issuance, El Salvador is also initiating a Bitcoin mining project with a budget of $1 billion, tapping into the geothermal energy from Conchagua’s volcanoes. This undertaking aligns with the country's broader strategy of harnessing green energy to drive Bitcoin mining and stimulate economic expansion.

The bond gained approval after an initial announcement in 2022 by Alejandro Zelaya, the former finance minister. The delay in launching stems from the complex and innovative nature of introducing such a pioneering financial tool.

This development marks a significant chapter in El Salvador’s commitment to integrate Bitcoin into its economy, illustrating its ambition to be a leader in cryptocurrency adoption. The Volcano Bonds initiative transcends a mere financial venture; it embodies the nation’s forward-thinking philosophy toward sustainable economic development.

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Nik is a seasoned analyst and writer at Metaverse Post, renowned for offering insightful perspectives on the rapidly evolving tech landscape, with a special focus on AI/ML, XR, VR, on-chain analytics, and blockchain innovation. His writing captivates a diverse range of readers, keeping them informed and ahead of technological trends. With a Master’s degree in Economics and Management, Nik possesses a firm understanding of the business sector and its intersection with emerging technologies.