El Salvador's Bitcoin Bonds Secure Regulatory Approval for Q1 2024 Launch

El Salvador's much-anticipated Bitcoin bonds, known as "Volcano bonds," have achieved a significant milestone by securing regulatory approval. The country's National Bitcoin Office announced the approval on Tuesday, indicating plans for issuance in the first quarter of 2024. The bonds will be available on Bitfinex Securities, a regulated arm of the Bitfinex cryptocurrency exchange.

Regulatory Green Light for Volcano Bonds

El Salvador's National Bitcoin Office, through its X handle, confirmed that the "Volcano Bond" had received the necessary regulatory approval from the Digital Assets Commission (CNAD). The announcement stated, "We anticipate the bond will be issued during the first quarter of 2024." This move marks a crucial step toward the realization of President Nayib Bukele's vision.

President Bukele's Confirmation

President Nayib Bukele corroborated the news on social platform X, posting an inquiry about the "Volcano bond" and resharing multiple posts that hinted at the bonds' issuance in Q1 2024. The president has been a vocal supporter of Bitcoin and introduced legislation recognizing it as legal tender in El Salvador in 2021.

Volcano Bonds Background

The concept of "Volcano bonds" was initially unveiled in 2021, with President Bukele expressing the aim to raise $1 billion through bitcoin-backed bonds. The funds are intended to fuel a sustainable bitcoin mining industry, leveraging renewable energy sources, including the energy harnessed from the country's active volcanoes.

Timeline and Delays

Although the issuance was initially scheduled for March 2022, various postponements occurred. The digital assets bill finally made its way to the Legislative Assembly in late November 2022, where Bukele's party, Nuevas Ideas, holds a substantial majority.

While this development showcases progress, it is essential to monitor how the market and investors respond to these unique financial instruments, given the delays experienced in the past.