El Salvador to Issue Bitcoin Bonds in Q1 2024
The El Salvadoran Digital Assets Commission has approved the issuance of a Volcano Bond for the first quarter of 2024. The announcement was made by President Nayib Bukele, who responded to his own question of “when.”
The National Bitcoin Office has stated that the bonds will be released on the country’s registered blockchain stock and bond platform, Bitfinex Securities.
The bonds will have a circulation period of ten years, with an annual coupon rate of 6.5%. In January 2023, the parliament of El Salvador passed legislation to establish a legal framework for the issuance of digital assets, including Bitcoin-based bonds.
It is expected that the issuance of these bonds will raise $1 billion in funds. According to Bitfinex, the funds will be used to pay off the country’s sovereign debt, establish mining infrastructure, and finance the construction of Bitcoin City.
In November 2021, President Nayib Bukele announced the plans for the creation of Bitcoin City along the Gulf of Fonseca.
