Bitcoin bonds, an innovative financial tool linking the world of cryptocurrencies with traditional markets, have just reached an important milestone. El Salvador, a pioneer in adopting Bitcoin as legal tender, is preparing to launch the world’s first of its kind.
Bitcoin bonds could launch as early as early in the new year
El Salvador’s long-planned Bitcoin bond issue is nearing fruition. According to the latest reports from the country’s cryptocurrency bureau, they have received the green light from regulators and are expected to hit the market as early as the first quarter of 2024. This market innovation, dubbed “Volcano Bonds,” is to be available on Bitfinex Securities, a regulated platform associated with the Bitfinex cryptocurrency exchange.
President Nayib Bukele enthusiastically shared the news on social media platform X, writing: “We have just received approval for the Volcano Bond! Issuance planned for the first quarter of 2024.” This event represents another step in the realization of his vision, which aims to raise $1 billion with this type of tool. With this, Bukele wants to support the development of the BTC mining industry, basing it solely on renewable energy.
Volcano bonds an opportunity and an example
The original plan was to issue these bonds as early as March 2022, but their introduction was postponed several times. It wasn’t until late November 2022 that the Digital Assets Act was introduced into the Legislative Assembly, where Bukele’s party, Nuevas Ideas, has a significant majority, paving the way for the finalization of this innovative project.
Bitcoin bonds in El Salvador symbolize not only technological advancement, but also a determination to realize the potential of digital currency in the financial sphere. This pioneering event can set an example for other countries on how they can use BTC and other cryptocurrencies, in terms of looking after the national interest.
Bitcoin in El Salvador
In El Salvador, Bitcoin was introduced as legal tender through a law signed by President Nayiba Bukele in 2021. This step made the country the first in the world to recognize BTC as an official currency valid alongside the US dollar. The decision was aimed at facilitating financial transactions and access to banking systems for the population. This was especially true for those without a bank account. The implementation of Bitcoin in El Salvador has sparked both interest and debate about the future and the impact of the cryptocurrency on the country’s economy.
