El Salvador's Volcano Bond gets regulatory approval, targets Q1 launch

El Salvador’s long-anticipated Bitcoin bonds, also known as “Volcano Bonds” have received the regulatory nod, and are expected to launch early 2024.

The Volcano Bond was approved by El Salvador’s Digital Assets Commission and is anticipated to launch during the first quarter of 2024, according to a Dec. 11 statement from The National Bitcoin Office (ONBTC) of El Salvador.

BREAKING NEWS

The Volcano Bond has just received regulatory approval from the Digital Assets Commission (CNAD).

We anticipate the bond will be issued during the first quarter of 2024.

This is just the beginning for new capital markets on #Bitcoin in El Salvador.

— The Bitcoin Office (@bitcoinofficesv) December 12, 2023

The country’s pro-Bitcoin leader Nayib Bukele also seemingly confirmed the news in a post of his own, captioned: “Wen volcano bond.”

Wen volcano bond?

— Nayib Bukele (@nayibbukele) December 12, 2023

El Salvador first passed the landmark legislation providing the legal framework for the Bitcoin-backed bond on Jan. 11. The Volcano Bond is intended to pay down sovereign debt and fund the construction of the country’s proposed “Bitcoin City.”

ONBTC said the bond will be issued on Bitfinex Securities Platform, a trading site for blockchain-based equities and bonds that is registered in El Salvador

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El Salvador recently launched a Bitcoin mining project, worth $1 billion, which will tap into the country’s volcanic resources through a partnership with Luxor Technology.