El Salvador discloses intention to issue Bitcoin bonds in Q1 2024
Date
12/13/2023 6:47:10 AM
(MENAFN) In a significant move, El Salvador has disclosed its intention to issue Bitcoin bonds in the first quarter of 2024. The proceeds generated from these bonds are earmarked for funding the ambitious "Bitcoin City" project. The National Bitcoin Office, responsible for overseeing cryptocurrency-related initiatives, has confirmed that the Volcano Bond has received regulatory approval from the Digital Assets Commission. The issuance is anticipated to take place within the initial quarter of 2024.
El Salvador made history in 2021 when it declared Bitcoin as legal tender, a decision spearheaded by President Nayib Bukele. This groundbreaking move aimed to streamline financial transfers and extend financial services to the approximately 70 percent of Salvadorans lacking access to traditional banking.
As part of Bukele's broader strategy to integrate technology and environmental sustainability, the concept of constructing a "Bitcoin City" in eastern El Salvador was unveiled in 2021. This city is envisioned to harness thermal energy generated by local volcanoes, aligning with El Salvador's commitment to innovative and eco-friendly development.
Notably, the Salvadoran government has actively engaged with Bitcoin, making strategic purchases of the cryptocurrency. In July 2022, El Salvador acquired 80 Bitcoins, signaling its ongoing commitment to incorporating digital assets into its financial ecosystem. President Bukele has further affirmed the nation's resolve to continue daily Bitcoin acquisitions from November 2022 onward.
This latest initiative of issuing Bitcoin bonds underscores El Salvador's pioneering approach to integrating cryptocurrency into its economic landscape, marking a significant step toward realizing the vision of a technologically advanced and sustainable "Bitcoin City."
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