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El Salvador Bitcoin declared its intent to issue bitcoin bonds in the first quarter of 2024 to support the development of a “Bitcoin City,” utilizing a volcano as its power source. El Salvador’s plan to issue Bitcoin bonds in Q1 2024 for the development of a ‘Bitcoin City’ powered by a volcano marks a significant step in cryptocurrency integration.
Key Highlights:
- Bitcoin bonds issuance set for Q1 2024.
- Funds intended for the construction of a ‘Bitcoin City’ using volcano-generated energy.
- Bitcoin established as legal tender in El Salvador alongside the US dollar in 2021.
- 71% respondents in a survey felt Bitcoin did not improve family financial situations.
- Salvadoran government’s acquisition of 2,381 bitcoins with additional purchases made in 2022.
El Salvador Bitcoin Bond Announcement
The National Bitcoin Office, responsible for overseeing cryptocurrency initiatives, confirmed that the “Volcano Bond” had secured regulatory approval from the Digital Assets Commission (CNAD) and is slated for release in early 2024.
Since President Nayib Bukele’s directive in 2021, Bitcoin has operated as a legal tender alongside the US dollar in El Salvador Bitcoin. The dollar has held legal status in the nation since 2001.
The primary aim behind incorporating Bitcoin into the country’s economy was to streamline remittance processes for Salvadorans and enhance financial service accessibility for the 70 percent unbanked population.
However, a survey by the Central American University in May revealed that 71 percent of respondents felt that the cryptocurrency had not positively impacted their family’s financial situation.
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Funding El Salvador Bitcoin City: Volcano-Powered Vision
In tandem with adopting Bitcoin, Bukele introduced plans in 2021 for the establishment of a “Bitcoin City” in eastern El Salvador, leveraging thermal energy sourced from a nearby volcano.
The ambitious city project was earmarked to receive a substantial portion of its funding, approximately $1 billion, through the issuance of volcano bonds, as outlined by Bukele.
Official reports from the Salvadoran government indicate the acquisition of 2,381 bitcoins, with the most recent purchase of 80 bitcoins occurring in July 2022.
Public Perception of El Salvador Bitcoin: Survey Findings
Bukele further disclosed a daily purchase plan of one bitcoin starting from November 17, 2022. However, the government has not disclosed whether this procurement strategy has been actively pursued.
El Salvador’s strategic move to introduce Bitcoin bonds in 2024 aligns with its progressive approach to cryptocurrency integration, aiming to bolster economic development through innovative financial mechanisms.
Conclusion
El Salvador’s initiative to issue Bitcoin bonds and utilize cryptocurrency in its economy showcases a progressive approach towards financial innovation. Despite some skepticism regarding Bitcoin’s impact, the country continues to explore unconventional avenues for economic growth, exemplified by the ambitious ‘Bitcoin City’ project. This endeavor signifies a bold move towards leveraging cryptocurrency to drive national development and economic prosperity.
