REGULATION

Bitcoin volcano bond approved by committee, El Salvador expected to officially issue early next year.

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Bitcoin volcano bond approved by committee, El Salvador expected to officially issue early next year.

El Salvador's Bitcoin Volcano Bonds have been in the works for two years, and finally received approval from the country's Digital Assets Council on December 11, with an expected issuance in the first quarter of 2024.

Delay in the issuance on the 20th? El Salvador's "Bitcoin Bonds" may be postponed again, with no official explanation yet.

What is El Salvador's Bitcoin Volcano Bond for?

The "Volcano Bond" was proposed by El Salvador's President Nayib Bukele in November 2021 as part of the project to build a Bitcoin City at the base of the Conchagua Volcano.

In Nayib Bukele's plan, the construction of the Bitcoin City will be financed by issuing a $1 billion bond, hence the bond is referred to as the "Bitcoin Bond" or "Volcano Bond," with a 10-year term and an annual interest payment of 6.5% to its holders.

Regulatory Approval for Bitcoin Volcano Bond

The National Bitcoin Office of El Salvador, ONBTC, stated on December 11 in a tweet that the Volcano Bond has received approval from El Salvador's Digital Assets Committee.

Note: ONBTC was established on November 25, 2022, as an independent administrative unit with technical autonomy under the President's jurisdiction.

ONBTC stated that the bond will be issued on the Bitfinex securities platform, as El Salvador had previously granted Bitfinex the country's first license as a digital asset service provider.

Related news: El Salvador grants Bitfinex first digital asset license, El Salvador introduces new law to reduce startup taxes

Nayib Bukele Confirms Issuance

Nayib Bukele, who has been granted a six-month leave of absence approved by Congress, also tweeted confirming the issuance of the Volcano Bond.

Related news: El Salvador finally profits from Bitcoin! Nayib Bukele unconstitutional but still running for re-election as president