El Salvador’s Digital Assets Commission has granted regulatory approval to Volcano Bonds, the world’s first-ever Bitcoin-backed bonds.
As per the tweet by the National Bitcoin Office (ONBTC), the Volcano Bonds will be offered by the securities platform owned by Bitfinex. The bonds are currently scheduled for issuance in the first quarter of 2024.
The Volcano Bonds were unveiled 21 months ago in 2021, when President Nayib Bukele announced his plans to make Bitcoin a legal tender in the nation. He had envisioned that the proceeds from the Volcano Bonds would help repay foreign debt.
Likewise, the funds from the sale of Volcano Bonds were intended to be used to finance the construction of Bitcoin City, which, in turn, would harness the geothermal energy from the Conchagua Volcano for large-scale Bitcoin mining farms.
Meanwhile, Bitcoin has continued the uptrend in its pricing, having surpassed the $40,000 resistance last week. BTC is currently priced at $41.9K, with analysts expecting the token to cross the $45,000 threshold by the end of 2023.