El Salvador’s much-anticipated “Volcano Bonds,” linked to Bitcoin, have secured regulatory approval and are set for a debut in the first quarter of 2024. The country’s Digital Assets Commission sanctioned the Volcano Bond, confirmed by El Salvador’s National Bitcoin Office (ONBTC) on December 11.
Earlier this year, El Salvador made headlines by passing laws that paved the way for this Bitcoin-backed bond. The Volcano Bond serves to manage national debts and fund the development of “Bitcoin City,” a proposed project in the country.
ONBTC mentioned that the bond will be released on the Bitfinex Securities Platform, a registered exchange for blockchain-based securities in El Salvador.
Renowned for its crypto-friendly policies, El Salvador has actively pursued various cryptocurrency ventures. Alongside the Volcano Bonds, the country recently initiated a $1 billion Bitcoin mining project in partnership with Tether and Luxor Technology. This initiative targets the establishment of “Volcano Energy,” a 241 MW power generation facility in Metapán dedicated to Bitcoin mining.