Bitcoin Miner Ocean Expands to El Salvador

El Salvador’s Bitcoin Volcano Bond Receives Regulatory Approval

The pursuit to become the burgeoning crypto hub in Central America has compelled El Salvador to create a friendly environment for businesses. On Monday, the Salvadorian authority announced that the Bitcoin bond, which was dubbed Volcano Bond, received regulatory approval.

The announcement demonstrated that the approval of the issuance of Volcano Bonds allows the authority to launch the long-awaited Bitcoin-powered bond by early next year.

Significance of Bitcoin Bond

An official publication from The National Bitcoin Office (ONBTC) indicated that the Volcano Bond met the Digital Assets Commission requirements and will go live in Q1 of 2024. The approval of the Volcano bond ignited hope and excitement among the crypto proponents.

The approval of the Volcano Bond was also celebrated by the outgoing president Nayib Bukele. In his address, the pro-crypto presidential candidate updated the Salvadorian resident that after a lengthy wait for the approval of the first Bitcoin-oriented bond, the authority finally allowed the issuance of the new bond.

Mr Bukele restated that the Volcano Bond will be issued from next year. He confessed that launching the Volcano Bond was first pitched in 2021 after El Salvador accepted Bitcoin as a legal tender.

At that time, the Salvadorian authority sought to launch a government bond to support the  in expanding its revenue-generating streams. Launching the Volcano Bond aims to support the government in raising $1 billion, which will be redirected toward government debt repayment and the development of Bitcoin City.

El Salvador Seeks to Increase Government Revenue

Launching the Volcano Bond demonstrated El Salvador’s commitment to maximizing the investors’ value. The government report showed that the bond will generate 6.5% returns annually to investors in the next ten years.

The Central American country confirmed that Bitfinex Securities Platform will support the buying and selling of the Volcano Bond. In an earlier post, the former finance minister at El Salvador, Alejandro Zelaya, had anticipated that the Volcano Bond would go live in mid-March 2022.

Bitcoin Adoption in El Salvador

The minister later admitted that due to the unstable political condition in the Central American country extended the launching dates for the Volcano Bond. Despite the multiple delays in launching the Bitcoin Bond, the Salvadorian authority seeks to establish Bitcoin City neighboring the Conchagua Volcano.

The proximity of Bitcoin City to the natural volcanoes in the region aims to support the establishment of urban infrastructure such as schools, housing, and shops, among other entities near geothermal energy sources.

A review of the proposed Bitcoin City  demonstrates that the crypto miners in the pro-crypto states will use geothermal energy to optimize mining activities. A few months ago, El Salvador partnered with Luxor Technology to launch a $1 billion Bitcoin mining facility.

The newly launched Bitcoin mining site will leverage renewable energy sources to support crypto-mining activities in the region.

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