In a visionary move, El Salvador has unveiled plans to issue innovative crypto-backed bonds, marking a significant stride towards materializing the ambitious Bitcoin City project. Endorsed by the Digital Assets Commission (CNAD), these Volcano Bitcoin bonds, rooted in the country’s sustainable Bitcoin mining sector tapping into volcanic energy, aim to raise a substantial $1 billion from global investors. This financial injection holds the key to the realization of the much-anticipated Bitcoin City.
The latest approval granted by the local regulator, CNAD, signifies a monumental step in El Salvador’s journey to introduce a pioneering financial instrument leveraging the burgeoning digital assets ecosystem within the nation. Scheduled for release in the initial quarter of 2024, the bonds orchestrated by the National Bitcoin Office are slated for listing on the Bitfinex Securities platform, regulated in both Kazakhstan and El Salvador.
The National Bitcoin Office (ONBTC) joyfully heralded the regulatory endorsement via its “X” account on December 12, hailing this development as a gateway to the establishment of novel Bitcoin-centric capital markets within the country.
El Salvador initially introduced the concept of these ground-breaking bonds back in 2021 following its historic decision to recognize Bitcoin as a legal tender. Originally planned for launch in March 2022, the bearish market conditions led to a postponement in the issuance. Nevertheless, the enactment of digital assets legislation in November 2022 has paved the way for these transformative bonds, offering investors an enticing ten-year term with a lucrative 6.5% annual return.
At the core of this initiative is El Salvador’s Bitcoin mining industry, harnessing the power of renewable volcanic energy. The slated funds from the bonds’ issuance in the first quarter of 2024 are poised to fuel the construction of the much-anticipated Bitcoin City.
This landmark decision aligns with El Salvador’s previous move in 2021, where it made global headlines by recognizing Bitcoin as legal tender. Originally slated for launch in March 2022, the bear market temporarily postponed the bond issuance. However, November 2022 saw the passage of digital assets legislation, clearing the path for these innovative bonds.
Investors eyeing these crypto-backed bonds can anticipate a ten-year term coupled with an attractive 6.5% annual return. Such terms are expected to lure a diverse pool of global investors, further solidifying El Salvador’s position as a pioneer in the realm of digital finance and Bitcoin-based capital markets.
Moreover, El Salvador recently introduced the “Adopting El Salvador Freedom Visa Program,” offering a unique pathway to Salvadoran citizenship for those willing to invest $1 million in Bitcoin or the stablecoin USDT. This program adds a distinct layer to the country’s efforts in embracing cryptocurrencies and fostering an environment conducive to investment and innovation.
With this groundbreaking development, El Salvador continues to lead the charge in leveraging blockchain technology and cryptocurrencies to forge new paths in finance and infrastructure. The prospect of Bitcoin City stands as a testament to the country’s unwavering commitment to innovation and sustainable development, setting a precedent for future ventures in the global digital economy.
In tandem with this financial initiative, El Salvador has recently rolled out the “Adopting El Salvador Freedom Visa Program,” an innovative pathway to Salvadoran citizenship for individuals ready to invest $1 million in either Bitcoin or the stablecoin USDT. This pioneering program aligns with the nation’s progressive stance on digital assets and marks another stride in fostering investment opportunities in the burgeoning crypto landscape.
This monumental stride by El Salvador reflects its unwavering commitment to embracing cryptocurrency as a catalyst for economic growth and development. The convergence of crypto-backed bonds, renewable energy-based Bitcoin mining, and the novel citizenship program epitomizes the nation’s dedication to leveraging the potential of digital assets for a brighter future.
Get the latest Crypto & Blockchain News in your inbox.