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El Salvador has achieved another milestone in the world of cryptocurrency with the regulatory approval of its Volcano Bond by the Digital Assets Commission (CNAD). This bond is a crucial part of the country’s plan to establish the world’s first Bitcoin city. President Nayib Bukele confirmed this development on social media, signaling a significant step forward in El Salvador’s crypto-centric vision.
The Volcano Bond, set to launch in Q1 2024, will be the world’s first BTC Bond. It is derived from El Salvador’s initiative to utilize geothermal energy from its active volcanoes for Bitcoin mining. The bond aims to raise $1 billion to fuel this project. Although the bond’s launch has been delayed multiple times, the recent regulatory approval paves the way for its imminent release in 2024.
The bond will be issued through Bitfinex Securities, a registered securities trading platform in El Salvador, symbolizing the country’s integration of cryptocurrency into its national economic framework.
This regulatory approval comes at a time when El Salvador has been successful in attracting significant Bitcoin investments through its “Adopting El Salvador Freedom” program. The program has already received applications from 153 individuals, each committing $1 million in BTC or USDT. If all applications are approved, this influx of funds will amount to $153 million, providing a substantial economic boost for El Salvador and further solidifying its position as a pioneer in the global crypto landscape.
The introduction of BTC into El Salvador’s economy through these initiatives holds the potential to generate various benefits. It could attract foreign investment, enhance the nation’s technological infrastructure, and position El Salvador as a key player in the global crypto economy. Additionally, this move aligns with Vice President Felix Ulloa’s vision of leveraging BTC to attract capital and tourists to the country and tie its national debt to the cryptocurrency.