By Leo Schwartz
Summary:
After nearly two years of delays, El Salvador’s Bitcoin Volcano Bond has received regulatory approval from the Digital Assets Commission (CNAD) and is expected to be issued in the first quarter of 2024. The bond, named after a plan to use geothermal energy from a volcano for Bitcoin mining, was initially announced by President Nayib Bukele in 2021 after El Salvador adopted Bitcoin as legal tender. The bond’s debut in early 2022 was postponed and faced multiple delays before El Salvador’s congress passed a law in January, creating a legal framework for the bond. The bond could help the nation avoid defaulting on its debt, although the International Monetary Fund has urged El Salvador to eliminate Bitcoin as a legal currency. The funds raised by the Volcano Bond are intended for the creation of a “Bitcoin city” and investments in Bitcoin itself, aligning with El Salvador’s broader embrace of cryptocurrency.