El Salvador’s much-anticipated Bitcoin bonds have moved a step closer to realization, with regulatory approval reportedly granted for an early 2024 issuance, as announced by the country’s Bitcoin-centric office on Tuesday.
President Nayib Bukele indicated that the launch of the bonds is anticipated in the first quarter of 2024.
The upcoming bonds are slated to be available on Bitfinex Securities, a regulated segment of the Bitfinex cryptocurrency exchange.
Announcing the news on its X handle, El Salvador’s National Bitcoin Office stated, “The Volcano Bond has officially secured regulatory approval from the Digital Assets Commission (CNAD). We anticipate the bond’s issuance in the first quarter of 2024.“
President Nayib Bukele also appeared to confirm the approval on his X account, posting a query, “Wen volcano bond?” early on Tuesday. He further shared and reposted several messages affirming that the bonds are scheduled for issuance in Q1 2024.
Dubbed the “Volcano bonds,” these financial instruments were initially unveiled by President Nayib Bukele in 2021 shortly after the enactment of a law recognizing bitcoin as legal tender in the country.
Bukele’s ambitious goal is to raise $1 billion through these bitcoin-backed bonds, intending to foster a bitcoin mining industry exclusively powered by renewable energy, including that harnessed from the nation’s active volcanoes.
While the initial issuance date was slated for March 2022, it faced multiple delays. However, progress was made with the introduction of the digital assets bill in the Legislative Assembly at the end of November 2022, where Bukele’s party, Nuevas Ideas, holds a significant majority.
The law secured approval with 62 legislators voting in favor and 16 against, ultimately passing in January 2021.
This development marks the second significant bitcoin-focused initiative in recent weeks for El Salvador. Prior to this, the country launched its “Freedom VISA” program, offering residency to a maximum of 1,000 individuals annually who invest at least $1 million in bitcoin or tether stablecoins.