The long-awaited Bitcoin bonds in El Salvador have gradually come closer to reality as it received regulatory approval to issue Bitcoin bonds in early 2024, according to a popular Bitcoin-powered office’s post earlier this week.
Bitfinex Securities, a regulated subsidiary of the well-known cryptocurrency exchange Bitfinex, is all set to list the Bitcoin bonds. El Salvador’s National Bitcoin Office published an announcement on its X official website.
The Volcano Bond received regulatory approval from CNAD (the Digital Assets Commission) and is expected to be issued in the first quarter of 2024. The post was later confirmed by President Nayib Bukele, who emphasized the approval of the issuance of the Bitcoin bond in Q1 2024.
The Volcano Bonds were initially announced by the president in 2021, shortly after a law that he passed recognized Bitcoin as the country‘s legal tender. Bukele aimed to raise $1 billion through Bitcoin-powered bonds that seed the Bitcoin mining industry solely reliant on renewable forms of energy, including those generated by the active volcanoes in the country.
The plan for issuance was due in March 2022, but it was postponed many times. However, the virtual asset bill was eventually introduced in November 2022 in the legislative assembly, where Nuevas Ideas, Bukele’s party, had a huge majority.
The law was supported by 62 legislators and opposed by 16. This current breakthrough is the second Bitcoin-related development in recent weeks.
El Salvador earlier kicked off its dedicated program called Freedom VISA, which doles out residency to up to 1000 people per year who invest a minimum of $1 million in Bitcoin or Tether USD.