While it had made bitcoin (BTC) legal tender on its territory, El Salvador was working to provide financial instruments favorable to this policy. The country has made progress in this direction, with the Digital Assets Commission (CNAD) having validated the issuance of the world’s first bitcoin (BTC) bonds.
New step for bitcoin (BTC), on the financial market of El Salvador
El Salvador has taken an important step in its quest for innovative financial instruments. Indeed, regulatory approval is granted for the issuance of bitcoin (BTC) bonds. Like the monetary legalization of the flagship crypto in the country, this is a first.
As usual, it was Nayib Bukele, the resigning president of El Salvador who published the new. On X (formerly Twitter), the politician shared information about the upcoming launch of these bonds, scheduled for the first quarter of 2024.
The issuance of these financial instruments called “Volcano Bonds” will be facilitated by Bitfinex Securities, a regulated division of the popular crypto exchange Bitfinex. A development that Nayib Bukele was enthusiastic about.
The latter indicated that the regulatory green light had been obtained. Notably thanks to the approval of the Commission for Digital Assets (CNAD), as revealed by the National Bitcoin Office of El Salvador.
Return to the history of “Volcano Bonds”
It must be said that Volcano bonds are not strictly speaking a new project. Their genesis dates back to 2021. In the wake of the monetary legalization of the flagship crypto in El Salvador, plans to issue financial instruments using the asset had filtered out.
The goal was ambitious to say the least, as it consisted of raising $1 billion through these bonds. With one particularity however. Provide funds that support the Salvadoran bitcoin mining ecosystem powered in particular by renewable energy.
Originally planned for a March 2022 broadcast, the project fell behind schedule. However, the November 2022 introduction of a digital assets bill in the Salvadoran Legislative Assembly put the initiative back on the table.
Subsequently, the bill received massive support leading to its enactment after its adoption in January 2023. A breakthrough that paved the way for the realization of El Salvador’s innovative financial vision.
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