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- The El Salvador government has finally revealed that its Bitcoin volcano bonds will be released in the first quarter of next year after a local authority provided regulatory approval.
- The bonds will be issued on Bitfinex’s securities trading division and target to raise $1 billion to kickstart a BTC mining operation solely dependent on renewable energy.
El Salvador is set to make history early next year when it finally issues its long-anticipated Bitcoin bonds. First announced in 2021, the bonds will be used to raise money to fund the country’s vision of establishing the largest green BTC mining establishment in the world.
Nayib Bukele, the Central American country’s president first hinted at the impending announcement by tweeting a cheeky, “Wen volcano bonds.” Shortly after, the country’s National Bitcoin Office announced that the volcano Bitcoin bonds had received regulatory approval from the Digital Assets Commission to launch early next year.
“This is just the beginning for new capital markets on Bitcoin in El Salvador,” the office stated.
🚨BREAKING NEWS🚨
The Volcano Bond has just received regulatory approval from the Digital Assets Commission (CNAD).
We anticipate the bond will be issued during the first quarter of 2024.
This is just the beginning for new capital markets on #Bitcoin in El Salvador.
🇸🇻🌋🚀
— The Bitcoin Office (@bitcoinofficesv) December 12, 2023
Bukele first announced the Bitcoin bonds in 2021, shortly after he had made history by making El Salvador the first country with Bitcoin as legal tender. The eccentric president was optimistic that the bonds would be issued by last year, but this vision has taken longer than anticipated.
However, the bonds kept on getting postponed. In March last year, for instance, the country’s Finance Ministry blamed the market’s volatility and the conflict between Ukraine and Russia.
Bukele’s plan, as he relayed it at the time, is to raise $1 billion from the sale of the bonds. He intends to channel half of this to build the world’s first Bitcoin city. This city would be tax-free for Bitcoin enthusiasts and would be powered by geothermal energy from volcanoes located nearby, hence the name volcano bonds. The other half would go into purchasing Bitcoin and holding it.
El Salvador to Make History
President Bukele is one of the world’s most vocal Bitcoin enthusiasts. Aside from his Bitcoin Law that made the top crypto legal tender, he has been pushing for adoption in his country. His government has been spending millions of dollars to purchase BTC as reserves, yet another world record. In November last year, he announced that he would purchase one BTC every day.
His decision to stockpile BTC hasn’t paid off well, at least not on the profit margins. When BTC briefly went above $42,000, Bukele announced that the reserves were on a profit of $3.6 million, but this only lasted shortly as BTC soon dipped below this level and now trades at $41,800.
However, Bukele’s moves haven’t been without critics and opposition. The first is his people, many of whom have no interest in Bitcoin. One study after another has revealed that close to 70% of Salvadorians are not interested in BTC, despite the law recognizing it as legal tender. This criticism has spilled to open opposition, with thousands flocking to the streets in protests and demonstrations against the Bitcoin Law.
