- The Volcano Bond will be issued during the first quarter of 2024
- El Salvador announced plans to issue a bond of $1B back in 2021
- That bond was to help build Bitcoin City in the country
The government of El Salvador plans to launch Bitcoin bonds early next year according to an X post by the country’s Bitcoin-focused office, CoinDesk reported. Bitfinex Securities will offer the bonds. This is a regulated division of leading crypto exchange Bitfinex.
The country’s National Bitcoin Office posted on X that the Digital Assets Commission (CNAD) had approved the so-called Volcano Bond, adding that they expected the bond issue to take place during the first quarter of next year.
El Salvador President Nayib Bukele confirmed the news on X, reposting that the government would start issuing the bonds at that time in 2024.
$1B bond will help build Bitcoin City
Bankless Times reported that El Salvador planned to issue a bond in the amount of $1 billion. The financial instrument will be hosted by Liquid Network and developed by Blockstream.
President Nayib Bukele’s goal is to raise this amount for Bitcoin City, which he plans to build near a volcano along the Gulf of Fonseca. The money will be spent on securing the required energy and Bitcoin mining infrastructure for the city.
The issuance of the bond was to take place in March last year, but was delayed several times. The respective bill was finally introduced at the end of November 2022.
Unwavering support for the flagship crypto
In 2021, El Salvador accepted Bitcoin as legal tender, becoming the first country in the world to do so. Despite the market crash around September last year, the government bought another 500 Bitcoin.
Earlier this year, El Salvador launched its "Freedom VISA" program, under which up to 1,000 people a year will receive a residence permit. The prerequisite? The individual must invest $1 million or more worth of Bitcoin or Tether (USDT) stablecoins in the country’s economy.
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