- The long-awaited Bitcoin Volcano Bonds in El Salvador have finally received approval, with regulators giving the green light for the bonds to be issued in the first quarter of 2024.
- The CNAD is a state institution responsible for regulating and overseeing El Salvador’s digital assets ecosystem.
- It remains to be seen whether the bonds will have a regular term like one year or be tradable like other cryptocurrencies.
El Salvador secures necessary approvals for the anticipated Bitcoin Volcano Bonds: When will the bonds launch?
El Salvador Gains Approval for Bitcoin Bonds
The anticipation for El Salvador’s expected Bitcoin Volcano Bonds has come to an end as regulators approve the issuance of the bonds in the first quarter of 2024. The Bitcoin-friendly reputation of the El Salvador government is strengthened as it continues to approve crypto-related ventures.
The latest development indicates that El Salvador plans to officially launch the Bitcoin Volcano Bonds in the first quarter of 2024. According to reports, the Digital Assets Commission (CNAD) has granted regulatory approval for the Volcano Bond. CNAD is a state institution responsible for regulating and overseeing El Salvador’s digital assets ecosystem.
It remains to be seen whether the bonds will have a regular term like one year or be tradable like other cryptocurrencies. The Latin American country first introduced the idea of Bitcoin Volcano Bonds in early 2024. At that time, the government envisioned building a Bitcoin City and reported its plans to issue ‘Volcano’ tokens via a crypto exchange on the blockchain.
What Are Bitcoin Volcano Bonds?
Since making Bitcoin legal tender, El Salvador has adopted an aggressive approach to assess Bitcoin volatility. Initially, the government planned to raise around $1 billion through Volcano bonds, with half allocated to the tax-free construction of Bitcoin City and the other half earmarked for investment in BTC.
President Bukele eventually announced a new residency program targeting high-net-worth individuals. This program, named the ‘El Salvador Freedom Visa Program,’ offers citizenship in exchange for investments that can bring significant funds with BTC or USDT stablecoin. It is an investment-for-citizenship initiative that provides citizenship to those making substantial investments and is limited to a maximum of 1,000 people.
