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We’ve talked about El Salvador’s Bitcoin experiment and success many times now. Last week, we talked about how the country made net profit on its Bitcoin investments after deciding to always buy the dip. It’s been a fairytale for El Salvador so far, and tech-savvy president Nayib Bukele doesn’t plan on stopping El Salvador’s progress anytime soon.
For years, he’s talked highly of the so-called volcano bonds. Bukele plans to build a Bitcoin-mining-powered city on the island powered by its active volcanoes. The Bitcoin bonds are a big lure for foreign investors, and after all but eliminating crime and making a profit with BTC investments, the bonds are soon about to go live.
Huge Deal for Investors
The volcano bonds were a project that many dismissed. Bukele’s dream was to issue them to millionaires and major investors who will provide the country with the financial ‘fuel’ it needs to build the world’s first Bitcoin City. That initiative is now closer than ever, as it has finally secured regulatory approval. The Digital Assets Commission has finally confirmed the volcano bonds, and their issuance is expected in the first half of 2024.
This is a huge deal for investors. Bukele hopes to attract investors from all over the world and finally start the construction of the volcano-powered Bitcoin City. The plans from 2021 envision it as a city in the eastern region of El Salvador. The project should harness the thermal energy generated by a volcano – hence the name volcano bonds. They will serve as bonds available to foreign investors, and should contribute as much as $1 billion to the development of this plan.
So far, the regulatory greenlight has been met with a great response from the financial community. There are already investors planning to pour money into Bitcoin City. In return, they’ll get unique bonds. According to reports, they should be available at Bitfinex Securities. This is a regulated and legit segment of crypto exchange Bitfinex which has close relations with the president of El Salvador.
Major Bitcoin Milestones
El Salvador went with the controversial decision to switch to Bitcoin from the US Dollar in 2021. It came after the IMF refused to help the country, so new tech-savvy and crypto-friendly president insisted on a new plan. He ditched the IMF and the US Dollar and gambled on Bitcoin. There was instant criticism from major countries, the IMF, and the World Bank, but Bukele didn’t back down.
Instead, the government bought the dip anytime it could. In the summer of 2022, he announced that El Salvador would buy 1 BTC every day. The current value of El Salvador’s holdings exceeds $130 million, and last week, Bukele announced that the investment has made over $3 million in profit.
The volcano bonds and Bitcoin City are the next step of the plan. If El Salvador succeeds in getting huge investments, everyone will hold their breath to see what Bitcoin City brings.
