Volcano Bonds to Be Issued in Q1 2024, Says El Salvador’s National Bitcoin Office
A couple of years since first introducing it, it seems El Salvador is finally prepared to issue its Bitcoin-backed ‘Volcano bonds,’ the country’s National Bitcoin Office revealed on Tuesday. According to the announcement, El Salvador intends to issue these bonds during the first quarter of 2024. The move comes just a week after the nation announced its Bitcoin investment reached profitability.
El Salvador Moves Forward With Plans to Build a ‘Bitcoin City’
El Salvador, the world’s most Bitcoin-friendly country, announced on Tuesday it will issue Bitcoin bonds in Q1 2024. Also known as Volcano bonds, the proceeds from the sales of these bonds are expected to finance the construction of a “Bitcoin City,” an oceanside urban center at the base of a volcano.
“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.”– El Salvador’s National Bitcoin Office announced.
Introduced in 2021 by President Nayib Bukele, the Volcano bonds were passed soon after El Salvador became the world’s first country to adopt Bitcoin as a legal tender. His objective was to raise $1 billion through Bitcoin bonds and grow a crypto-mining industry contingent entirely on renewable energy, including that produced by El Salvador’s active volcanos.
The new announcement comes nearly a year after the Central American nation passed a bill for issuing Bitcoin-backed bonds.
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El Salvador’s Bitcoin Investment in the Green
El Salvador has been criticized since recognizing the world’s biggest cryptocurrency as legal tender. This was especially evident during the 2022 crypto winter, with critics slamming Bukele for putting the country in a financially precarious position.
And while the 2022 downturn was nothing short of scary, the matter has improved drastically for El Salvador in the wake of this year’s market resurgence. Earlier this month, Bukele announced a milestone achievement as the country’s significant investment in BTC became profitable by over $3 million.
This victory came following Bitcoin’s latest price surge to 18-month highs, propelled by vastly improved investor sentiment.
Furthermore, Bukele stressed that El Salvador has no intention of selling Bitcoin despite reaching profitability, reiterating that future volatility in its price will not affect the country’s long-term plans.
Recent calculations by CoinDesk indicated that El Salvador owned 2,744 Bitcoins, purchased at an average price of slightly below $42,000.
Hitting profitability with its Bitcoin investment represents a significant achievement for El Salvador, but could this turn into a massive pay-off for the Central American country in the long run? Let us know in the comments below.