El Salvador to place Bitcoin bonds in Q1 2024

The Salvadoran Digital Assets Commission approved the Volcano Bond placement in the first quarter of 2024.

?BREAKING NEWS?

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.

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

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— The Bitcoin Office (@bitcoinofficesv) December 12, 2023

The news was confirmed by President Nayib Bukele, who reposted it in response to his own question, “When?”.

Wen volcano bond? ?

— Nayib Bukele (@nayibbukele) December 12, 2023

According to the National Bitcoin Office, the instruments will be issued on a platform registered in the country for blockchain equities and blockchain bonds, Bitfinex Securities.

Maturity will be ten years, with a coupon rate of 6.5% per annum.

In January 2023, the Salvadoran parliament passed a law, providing the legal framework for the issuance of digital assets, including bitcoin-based bonds.

The aim is for the instrument to raise $1 billion.

According to Bitfinex’s statement, the funds will go toward funding the country’s sovereign debt, building infrastructure for mining, and financing Bitcoin City.

In November 2021, President Nayib Bukele announced the construction of Bitcoin City along Fonseca Bay. Under the plans, the city is to become a special economic zone with no taxes on income, property, capital gains, or wages.

Earlier, Salvadoran authorities, in partnership with Luxor Technology, launched a project to mine digital gold with a capacity of 241 MW, using resources from the Conchagua Volcano. Funds could be allocated for its development.

We found the Volcano ? Bonds. Will be available soon!!! pic.twitter.com/cUxfhhoCRn

— Bitcoin Beach (@Bitcoinbeach) December 12, 2023

Earlier, the Volcano Bond plans were first presented in March 2022. Subsequently, the authorities postponed the issuance of security tokens, citing adverse conditions.