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El Salvador’s Volcano Bond Gets Regulatory Nod: A Milestone For Bitcoin’s Future?

Bitcoinist

Bitcoin News / Bitcoinist 81 Views

El Salvador, a nation already distinguished for embracing Bitcoin, has achieved another milestone in the crypto realm. The nation’s Volcano Bond, integral to its plan to establish the world’s first Bitcoin city, has received regulatory approval from the Digital Assets Commission (CNAD).

This development was confirmed by President Nayib Bukele in a post on social media, signaling a major step forward in the country’s crypto-centric vision.

A Vision of A Bitcoin-Powered Future

El Salvador’s Volcano Bond, set to launch in Q1 2024, marks a historic moment as the world’s inaugural BTC Bond. The National Bitcoin Office (ONBTC) of El Salvador shared their enthusiasm on social media, noting:

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

The bond, derived from the country’s initiative to leverage geothermal energy from its active volcanoes for BTC mining, aims to raise $1 billion to fuel this project.

Initially scheduled for issuance in March 2022, the bond’s launch has been delayed multiple times, but the recent regulatory approval has set the stage for its imminent release in 2024.

The bond will be issued via Bitfinex Securities, a securities trading platform registered in El Salvador, symbolizing the country’s cryptocurrency integration into its national economic framework.

El Salvador’s Economic Uplift

Notably, the Volcano Bond regulatory nod development coincides with El Salvador’s recent success in attracting significant Bitcoin investments through its “Adopting El Salvador Freedom” program. A prominent BTC advocate, Max Keiser, revealed that the program has already garnered applications from 153 individuals, each committing $1 million in BTC or USDT.

This influx of funds, totaling $153 million if all applications are approved, represents a substantial economic boost for El Salvador, providing capital for national development projects and further cementing its position as a pioneer in the global crypto landscape.

The influx of BTC into El Salvador’s economy through these initiatives holds the potential to create a ripple effect of benefits. It could increase foreign investment, enhance the nation’s technological infrastructure, and potentially position El Salvador as a key player in the global crypto economy.

Furthermore, this move aligns with Vice President of El Salvador Felix Ulloa’s vision of leveraging BTC to attract fresh capital and tourists to El Salvador and tie its national debt to the cryptocurrency.

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Featured image from Unsplash, Chart from TradingView


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