El Salvador's much-anticipated Bitcoin BTC/USD bond, dubbed the "Volcano Bond," has received regulatory approval, paving the way for its launch in the first quarter of 2024.
This move marks a new chapter in the country's embrace of Bitcoin and its integration into the national economy.
The National Bitcoin Office of El Salvador, under the leadership of President Nayib Bukele, announced on social media that the Volcano Bond had been approved by the Digital Assets Commission.
The bond, which will be issued on the Bitfinex Securities Platform, is expected to be a cornerstone in the development of new capital markets based on Bitcoin in El Salvador.
El Salvador made headlines in January when it passed landmark legislation providing a legal framework for the Bitcoin-backed bond.
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The primary purpose of the Volcano Bond is to reduce the country's sovereign debt and finance the construction of the proposed “Bitcoin City.”
The city is envisioned to be a hub for cryptocurrency and blockchain technology, further cementing El Salvador's position as a leader in the crypto space.
Bitcoin Mining Project and Economic Implications
The bond's approval comes on the heels of El Salvador's launch of a $1 billion Bitcoin mining project, which utilizes the country's volcanic resources for energy.
This project not only showcases the country's commitment to cryptocurrency but also highlights its innovative approach to leveraging natural resources for economic growth.
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Image by Gylfi Gylfason from Pixabay
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