El Salvador’s Volcano Bonds Receive Regulatory Approval

The long-awaited Bitcoin bonds of El Salvador, also known as “Volcano Bonds,” have reportedly received approval for launch in early 2024.

The Digital Assets Commission of El Salvador has approved these bonds and they are expected to launch in the first quarter of 2024, as announced by The National Bitcoin Office (ONBTC) on December 11.

El Salvador’s president, who is known for being pro-Bitcoin, seemed to confirm the news with his own post captioned “Wen volcano bond,” while sharing other posts stating that the bonds will be issued in early 2024.

The idea of issuing Volcano Bonds was first introduced in November 2021. El Salvador passed a groundbreaking legislation in January 2021, providing a legal framework for these Bitcoin-backed bonds.

The Volcano Bonds will be used to pay off national debt and finance the construction of the proposed “Bitcoin City.”

According to ONBTC, the bonds will be issued on the Bitfinex Securities Platform, a trading platform for blockchain-based stocks and bonds that is registered in El Salvador.