World's First Bitcoin Bonds Approved For Launch In El Salvador Early Next Year

World’s First Bitcoin Bonds Approved For Launch In El Salvador Early Next Year

Updated: 12 December 2023

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El Salvador will issue the world’s first Bitcoin bonds in the first quarter of next year after approval was granted by the nation’s Digital Assets Commission.

The National Bitcoin Office (ONBTC) confirmed the approval on X, saying the launch will pave the way for a new capital market based on Bitcoin in El Salvador.

🚨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.

🇸🇻🌋🚀

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

Pro-Bitcoin President Nayib Bukele also corroborated the news, saying, “wen volcano bond.” The bonds, which Bitfinex Securities will offer, will run for ten years and pay a 6.5% annual return.

Wen volcano bond? 🥺

— Nayib Bukele (@nayibbukele) December 12, 2023

Bitcoin Bonds Proceeds To Fund “Bitcoin City”

President Bukele first disclosed the Bitcoin bonds in 2021 after the country adopted Bitcoin as a legal tender.

He planned for the bonds to raise $1 billion, which will finance the construction of a “Bitcoin City” powered by the country’s active volcanoes.

The bond issuance was initially slated for March 2022 before being postponed. In November 2022, a digital assets bill tabled at the Legislative Assembly paved the way for the product.

El Salvador is already tapping its volcanic resources to mine Bitcoin. The country partnered with Luxor Technology to set up a 241-megawatt Bitcoin mining project valued at $1 billion.

News of the bond launch plan comes after El Salvador last week announced a Freedom Visa program targeting crypto investors that pour at least $1 million into Bitcoin or USDT in the country.