- Bitfinex Securities Platform will be the issuer of the bond, according to ONBTC.
- The bonds are expected to endure for 10 years and pay 6.5% in return annually.
The long-awaited Bitcoin bonds from El Salvador, dubbed “Volcano Bonds,” are reportedly set to emerge in early 2024, according to reports.
A statement from The National Bitcoin Office (ONBTC) dated December 11th said that the Volcano Bond is expected to debut in the first quarter of 2024, after recently being approved by El Salvador’s Digital Assets Commission.
Moreover, Nayib Bukele, the country’s prominent leader, seemed to corroborate the report in a post he captioned: “Wen volcano bond.” Also, Bukele reposted numerous posts indicating that the bonds would be released in the first quarter of 2024.
Bitcoin City Underway
Issue of the Volcano Bonds by the government was first mooted in November 2021. Furthermore, El Salvador’s historic law laying the groundwork for the Bitcoin-backed bond was first enacted on January 11. With the proceeds from the Volcano Bond, the government hopes to build a “Bitcoin City” and reduce their overall debt.
Bitfinex Securities Platform, a trading platform for blockchain-based stocks and bonds registered in El Salvador, will be the issuer of the bond, according to ONBTC.
Moreover, the bonds, which are expected to endure for 10 years and pay 6.5% in return to investors each year, signify the beginning of Bitcoin-based financial markets in the nation. Also, with the help of Luxor Technology, El Salvador has recently begun a 241 megawatt Bitcoin mining project with a value of $1 billion.
This project will use the country’s volcanic resources. The volcano whose eruptions will fuel the country’s mining activities is named Conchagua. This green light comes almost two years after former finance minister Alejandro Zelaya announced plans to issue the Volcano Bond in the middle of March 2022.
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