El Salvador's proposed Bitcoin bonds have received regulatory approval from the country's Digital Assets Commission (CNAD).
The country's National Bitcoin Office (ONBTC) said on Twitter that it expects the bond to expire “in the first quarter of 2024.”
“This is just the beginning of new capital markets. #Bitcoin In El Salvador” added ONBTC.
El Salvador's president, Naib Buquele, retweeted several posts confirming the news.
El Salvador's “Volcano Bonds”
El Salvador's Bitcoin Law The issuance of Bitcoin bonds has been a big ambition for Bukele, who first announced plans to introduce El Salvador's bitcoin legislation after the cryptocurrency's legal tender in 2021.
At the time, the plan It was to issue a $1 billion bond in 2022, half of which will be converted into Bitcoin and the rest will be used for infrastructure and Bitcoin mining.
Known as “Volcano Bonds,” the bonds were supposed to be used to help build “Bitcoin City,” a tax-free environment for Bitcoin advocates, from Bitcoin mining equipment planned to use the Conchagua volcano.
However, the bond issuance period has been extended several times, and the country's finance minister cited market instability and the war between Russia and Ukraine as reasons for the delay. A law providing a legal framework for Bitcoin-backed bonds was approved in January 2023.
The country's plans to issue bitcoin-backed bonds have sparked a dispute with the International Monetary Fund (IMF), which has repeatedly called for El Salvador to change its bitcoin law, saying it “raises a number of macroeconomic, financial and legal issues.”
El Salvador continues to court Bitcoin loyalists by launching a “freedom visa” program that grants passports and residency to foreigners who invest $1 million. Bitcoin Or arrest in the country.
The country has been hoarding bitcoins for reserves as a statewide hedge against inflation. Bitcoin's recent rally above $42,000 pushed El Salvador's bitcoin holdings into profits, even as the cryptocurrency's price pulled back below that period.
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