The National Bitcoin Office of El Salvador on December 11 announced that “Volcano Bonds”, also known as the first Bitcoin bond in the world has received regulatory approval and are scheduled to launch in the first quarter of 2024.
President Nayib Bukele also confirmed the information earlier today, retweeting posts about the approval of Volcano Bonds.
“Volcano Bonds” was first announced in November 2021 by President Nayib Bukele. This country is expected to issue $1 billion in BTC bonds with the ambition to build a “Bitcoin City” based on Bitcoin mining using renewable energy from volcanoes.
By early 2023, the Legislative Assembly of El Salvador approved the new Law on the Issuance of Digital Assets as part of the technological and financial innovation that the State has been promoting as a mechanism to attract foreign investment, that began with the adoption of the Bitcoin Law. However, this plan was considered high risk by many financial experts due to the country’s significant public debt. In fact, it was delayed throughout 2022 because of legal barriers and the gloomy market situation at that time.
In addition, the legal status of digital assets might make El Salvador a target for tax evaders and harm the country’s worldwide reputation.
El Salvador is the first country to recognize Bitcoin as legal currency. According to portfolio tracker Nayib Tracker, El Salvador currently holds 2,770 BTC, equivalent to about $115 million.