El Salvador, the first country in the world to adopt Bitcoin as an official currency, is expecting to launch its long-planned but repeatedly postponed Bitcoin bonds, also referred to as volcano bonds, at the beginning of 2024. The country has received legal approval to initiate the Bitcoin bonds at the start of 2024.
According to the latest announcement from the National Bitcoin Office (ONBTC), the volcano bonds have been approved by the El Salvador Digital Assets Commission and are expected to be launched in the first quarter of 2024. The nation’s Bitcoin-friendly leader, Nayib Bukele, confirmed the development in a post on his personal X (formerly known as Twitter) account. In his post titled “Wen volcano bond,” he stated that the bonds would be issued in the first quarter of 2024.
El Salvador adopted a pioneering law in January, which provided the legal framework for Bitcoin-backed bonds. The volcano bonds are expected to offer a 6.5% annual return while financing the repayment of the state debt and the planned Bitcoin City.
ONBTC indicated that the Bitcoin bonds would be issued through Bitfinex Securities Platform, a trading site for blockchain-based stocks and bonds registered in El Salvador. The bonds, signifying the beginning of Bitcoin-based capital markets in the country, will have a duration of 10 years and provide their holders with an annual return of 6.5%.
Approval came roughly 21 months after the former finance minister Alejandro Zelaya announced that the volcano bonds would be launched in mid-March 2022. Additionally, El Salvador has recently partnered with Luxor Technology to establish a Bitcoin mining facility that plans to use the country’s volcanic resources.