News - El Salvador: Bitcoin bonds get green light

By Mike Hesp

El Salvador: Bitcoin bonds get green light

Bitcoin (BTC)
Crypto acceptance
Mining

The time has come: El Salvador's planned Bitcoin sovereign bonds have been given the green light by the country's regulatory authority and may be issued next year.

World's first government bonds to reference cryptocurrency Bitcoin are to be issued in El Salvador in the first quarter of 2024. The so-called Volcano Bonds have received confirmation from the Digital Asset Commission in El Salvador. The National Bitcoin Office (ONBTC) announced the news via X.

BTC government securities are issued on the Bitfinex Securities platform. This is the offshoot of the crypto exchange Bitfinex, which has been authorized to trade blockchain securities in El Salvador.

The name Volcano Bonds comes from the fact that El Salvador wants to finance an ambitious Bitcoin mining project with the Bitcoin government bond. The local volcano plays an important role in providing energy for this project.

Bitcoin bonds, however, are coming with a long delay. The idea originated in November 2021 and the country's former finance minister wanted to issue them as early as March 2022.

Now that the Bitcoin bear market seems to be over, the Bitcoin ambitions of the country to regain momentum. The country wants to raise a total of one billion US dollars with the Vulkan bonds, mainly to finance infrastructure projects for the Bitcoin industry.

Investors will receive 6.5 percent on the 10-year government bond.

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