El Salvador's Bitcoin Bonds Secure Regulatory Approval for 2024 Launch
The Journey of "Volcano Bonds" from Announcement to Regulatory Nod Making the First Bitcoin Bond
El Salvador's groundbreaking move towards integrating Bitcoin into its financial landscape has reached a pivotal milestone.
The eagerly anticipated "Volcano Bonds," first introduced in 2021 by President Nayib Bukele, have received regulatory approval, signaling a significant step towards their issuance in early 2024.
This development, shared through the country's National Bitcoin Office, reflects a noteworthy chapter in El Salvador's journey with cryptocurrency.
The Road to Regulatory Approval
After President Nayib Bukele's historic decision to recognize Bitcoin as legal tender in El Salvador, the vision of issuing Bitcoin-backed bonds, aptly named "Volcano Bonds," was set in motion.
The objective was ambitious: raising $1 billion to foster a Bitcoin mining industry powered exclusively by renewable energy, leveraging the country's abundant volcanic resources.
The initial plan aimed for issuance in March 2022, but delays persisted.
The turning point came in November 2022 when the digital assets bill was presented to the Legislative Assembly.
This legislative move, bolstered by the majority held by Bukele's party, Nuevas Ideas, set the stage for the much-anticipated regulatory approval.
Regulatory Green Light
Confirmation of regulatory approval emerged through El Salvador's National Bitcoin Office, specifically the Digital Assets Commission (CNAD).
The announcement was shared on social platform X, where President Nayib Bukele reaffirmed the news, creating a tangible sense of progress.
The bonds are poised to be offered on Bitfinex Securities, a regulated arm of the crypto exchange Bitfinex.
"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,"
stated the National Bitcoin Office's post, affirming the official acknowledgment.
President Nayib Bukele took to social platform X to express his confirmation of the regulatory nod. His post, "Wen volcano bond?" on Tuesday, echoed the sentiments of earlier posts, collectively reinforcing the expectation of the bonds hitting the market in Q1 2024.
El Salvador's journey with Bitcoin, from legal recognition to the imminent issuance of Volcano Bonds, exemplifies the complexities and delays inherent in pioneering financial initiatives.
The regulatory approval marks a crucial step forward, emphasizing the nation's commitment to integrating cryptocurrency into its economic framework. As the world watches, the success or challenges faced by El Salvador in this endeavor may influence the future trajectory of similar endeavors globally.
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