El Salvador plans to issue crypto-backed bonds to build Bitcoin City

El Salvador’s Volcano Bitcoin bonds have just received the green light from the Digital Assets Commission (CNAD), the local regulator responsible for oversight of the digital assets ecosystem within the country. These bonds, supported by the nation’s Bitcoin mining industry that harnesses renewable volcanic energy, aim to raise $1 billion from investors. This fund will be pivotal in constructing the much-anticipated “Bitcoin City.”

El Salvador has finalized preparations to issue the bonds in the first quarter 2024. The National Bitcoin Office plans to list the bonds on the Kazakhstan and El Salvador-regulated Bitfinex Securities platform.

The National Bitcoin Office (ONBTC) of El Salvador announced today the regulatory approval on its “X” account on December 12, stating that this development marks the beginning of new capital markets based on Bitcoin in the country.

El Salvador unveiled the concept of these bonds in 2021 after making the landmark decision to recognize Bitcoin as a legal tender. Initially set for a March 2022 launch, the bear market postponed the issuance. However, the passage of digital assets legislation in November 2022 has paved the way for these bonds, which offer a ten-year term and a 6.5% annual return to holders.

El Salvador recently introduced a Freedom Visa and Citizenship program known as the “Adopting El Salvador Freedom Visa Program,” which offers a pathway to Salvadoran citizenship for those willing to invest $1 million in Bitcoin or the stablecoin USDT.