Bitcoin Bonds Make History with Regulatory Green Light in El Salvador

• El Salvador's Bitcoin Bond Initiative Progresses
• Regulatory Approval for the 'Volcano Bond'
• Confirmation by President Nayib Bukele
• Purpose and History of the 'Volcano Bonds'
• Legislative Journey of the Bond Issuance
• El Salvador's Other Bitcoin Initiatives

El Salvador's Bitcoin Bond Initiative Progresses

The Bitcoin$42,260 -0.64% bonds that have been part of El Salvador's strategic plan are now a step closer to fruition. The country's Bitcoin-centric office announced on Tuesday that they have secured regulatory approval for the bond issuance planned for early 2024. Bitfinex Securities, a licensed branch of the cryptocurrency exchange Bitfinex, is set to offer the bonds.

Regulatory Approval for the 'Volcano Bond'

El Salvador's National Bitcoin Office conveyed the news of receiving regulatory approval from the Digital Assets Commission (CNAD) for the Volcano Bond. The bond's issuance is expected to take place within the first three months of 2024.

Confirmation by President Nayib Bukele

Confirmation of approval seems to be indicated by President Nayib Bukele, who posted Wen volcano bond? early on Tuesday, and reshared a number of posts indicating the issuance of bonds would occur in the first quarter of 2024.

Purpose and History of the 'Volcano Bonds'

The announcement of the Volcano bonds was made by President Nayib Bukele in 2021, following the enactment of a law which established Bitcoin (BTC) as a legal tender in the nation. Bukele's objective was to generate $1 billion through these Bitcoin-backed bonds. This would initiate a Bitcoin mining industry that wholly relies on renewable energy, including energy from the country's active volcanoes.

Legislative Journey of the Bond Issuance

The issuance of bonds was originally scheduled for March 2022, but faced multiple delays. The digital assets bill was finally presented in the Legislative Assembly in November 2022. Bukele's party, Nuevas Ideas, holds a significant majority in the assembly. Sixty-two legislators voted in favor of the law, while 16 opposed it. The law was eventually enacted in January 2021.

El Salvador's Other Bitcoin Initiatives

This is the second significant Bitcoin-related development in the country within a span of two weeks. Earlier, El Salvador launched its Freedom VISA program, which grants residency to up to 1,000 individuals per year who invest at least $1 million in Bitcoin or Tether$1.000 -0.12% (USDT) stablecoins.

Edited by Jonathan Stoker