El Salvador’s eagerly awaited Bitcoin bonds, colloquially referred to as “Volcano Bonds,” have secured regulatory approval for a slated early 2024 launch.

On December 11, the Digital Assets Commission of El Salvador officially sanctioned the Volcano Bond. Subsequently, the National Bitcoin Office (ONBTC) announced in a statement that the issuance is projected for the first quarter of 2024.

Nayib Bukele, the country’s pro-Bitcoin leader, seemingly affirmed this development through a post with the caption, “Wen volcano bond.” He further shared multiple posts corroborating the expectation that the bonds would be introduced in Q1 2024.

El Salvador’s Bitcoin Bonds: Legislation, Development, and Market Debut

The prospect of El Salvador issuing Volcano Bonds initially emerged in November 2021. On January 11, crucial legislation was enacted to establish the foundation for the Bitcoin-backed bond. Moreover, the primary goal of this legislation is to alleviate sovereign debt and provide funding for the development of the proposed “Bitcoin City.”

The ONBTC disclosed that the bond’s issuance would take place on the Bitfinex Securities Platform, a trading venue for blockchain-based equities and bonds registered in El Salvador. This move marks the initiation of Bitcoin-based capital markets within the country, with the bonds carrying a 10-year term and offering a 6.5% annual return to investors.

El Salvador’s $1B Bitcoin Mining Project and Volcano Bond Update

El Salvador's $1B Bitcoin Mining Project and Volcano Bond Update

El Salvador recently inaugurated a substantial 241-megawatt Bitcoin mining project valued at $1 billion. Furthermore, through a strategic collaboration with Luxor Technology, the project leverages the country’s volcanic resources. Specifically, it utilizes the Conchagua volcano to power the mining operations.

Additionally, almost 21 months ago, former finance minister Alejandro Zelaya announced the projected mid-March 2022 launch of the Volcano Bond. Now, regulatory approval for the initiative has been secured.

Read More:

Aptos To Unveil Major APT Token Unlock

London Pension Fund Allocates $20 Million to Crypto Derivatives Platform