NEWS: El Salvador's volcanic bond received regulatory approval from the country's Digital Assets Commission on December 11, 2023. The bond, which is a sovereign debt issue backed by bitcoins, has a face value of $1 billion and is scheduled to be issued in the first quarter of 2024.
The volcanic bond is an initiative of the president of El Salvador, Nayib Bukele, who seeks to raise funds for the construction of a special economic zone in the country. The special economic zone will focus on blockchain technology and cryptocurrencies, and is expected to create thousands of jobs.
Regulatory approval of the volcanic bond is an important step for the issuance of the bond. However, there are still some factors that could affect its success, such as the volatility of the cryptocurrency market and the interest of international investors.
If the volcanic bond is successful, it could be a major milestone for government adoption of cryptocurrencies. El Salvador would be the first country in the world to issue sovereign debt backed by cryptocurrencies.
