El Salvador's planned Bitcoin bonds have received regulatory approval from the country's Digital Assets Commission (CNAD).
The country's National Bitcoin Office (ONBTC) announced the news in a tweet, stating that it expects the bond to be issued "during the first quarter of 2024."
"This is just the beginning for new capital markets on #Bitcoin in El Salvador," the ONBTC added.
El Salvador's President, Nayib Bukele, retweeted a number of posts confirming the news. Per a tweet from the ONBTC, the bonds will be issued on the Bitfinex Securities Platform.
🚨BREAKING NEWS🚨
The Volcano Bond has just received regulatory approval from the Digital Assets Commission (CNAD).
We anticipate the bond will be issued during the first quarter of 2024.
This is just the beginning for new capital markets on #Bitcoin in El Salvador.
The issuance of Bitcoin bonds has long been an ambition for Bukele, who first announced plans to launch them after El Salvador's Bitcoin Law made the cryptocurrency legal tender in 2021.
At the time, the plan was to issue $1 billion in bonds in 2022, with half converted to Bitcoin and the remainder used for infrastructure and Bitcoin mining.
Conchagua volcano in El Salvador, Source: Shutterstock
Known as "volcano bonds," from the proposed use of the Conchagua volcano to power Bitcoin mining rigs, the bonds were to be used to help build a "Bitcoin City," a tax-free enclave for Bitcoin advocates.
However, the issuance of the bonds was postponed several times, with the country's finance minister citing market volatility and the war between Russia and Ukraine as reasons for the delay. Legislation providing a legal framework for the Bitcoin-backed bonds was passed in January 2023.
The country's plans to issue Bitcoin-backed bonds have caused friction with the International Monetary Fund (IMF), which has repeatedly called for the country to reverse its Bitcoin Law, claiming that it "raises a number of macroeconomic, financial, and legal issues."
El Salvador has continued to court the Bitcoin faithful, with the launch of a "freedom visa" program offering foreigners a passport and residency if they invest $1 million in Bitcoin or Tether in the country.
The country has also been stockpiling Bitcoin for its reserves, as a state-wide hedge against inflation. Bitcoin's recent rally over $42,000 propelled El Salvador's Bitcoin holdings into profit, though the cryptocurrency's price has since slipped back to below that figure.
Minutes after President Donald Trump signed the GENIUS Act into law, the CEOs of the world’s two largest stablecoin issuers laid out their plans for complying with the landmark legislation, with each making the case that their own company is better suited to America’s new regulatory landscape.
Paolo Ardoino, CEO of Tether, the world’s top stablecoin issuer, told Decrypt Friday his company intends to make sure USDT—its flagship dollar-pegged token—complies with the GENIUS Act’s regime for foreign...
Charles Schwab would like to issue its own stablecoin, its CEO Rick Wurster told analysts in an earnings call Friday, adding the firm to a growing list of traditional finance giants exploring the tokens as the U.S. prepares to enshrine stablecoin regulation into law.
"Stablecoins are likely to play a role in transacting on blockchains and that's something we do want to be able to offer,” Wurster said.
The executive's comment on offering a dollar-pegged token comes as Schwab aims to deepen its...
Bitcoin treasury giant Strategy has always been coy about naming its BTC custodians. But people outside the firm do know who they are.
For starters, Strategy has repeatedly cited its “various custody arrangements”—there is no one exclusive custodian that’s holding onto its nearly $72 billion worth of BTC on the company’s behalf. A spokesperson for Coinbase confirmed it is one of Strategy's custodians when asked by Decrypt—but stressed that MSTR has previously named Coinbase as one of its custodi...