Last Updated on January 28, 2023 by Bitfinsider
El Salvador, a nation in Latin America, is getting closer to accomplishing its goal of establishing Bitcoin City. According to speculations, the nation’s long-awaited “Volcano” tokens will be issued this year in 2023 by the cryptocurrency exchange Bitfinex.
The Volcano token, which will trade on the Bitfinex market, is essentially a Bitcoin bond created using blockchain technology. The chief technology officer at Bitfinex, Paolo Ardoino, stated that there will be enough demand for El Salvador’s proposed $1 billion Bitcoin bond.
El Salvador enacted its contentious Digital Assets law last month, in December. According to this law, the nation would have to establish a digital securities regulator and produce a prospectus for possible buyers of the bond worth $1 billion.
According to Ardoino, Bitfinex will later submit an application to this securities authority in order to obtain a license that will allow the exchange to do securities trading. Ardoino added: “We are on the right track now in order to make things happen in a more timely fashion.”
El Salvador intends to utilize half, or $500 million, of the $1 billion it raised from the sale of its Volcano tokens to develop Bitcoin City, a tax-free beachfront town. In essence, this metropolis will use extra geothermal energy generated by surrounding volcanic areas to mine bitcoins for the nation.
According to the President Nayib Bukele’s plan, El Salvador will spend an additional $500 million of its reserves to buy Bitcoin. Users will be informed of any potential value growth of the digital asset.
Ever since El Salvador made Bitcoin a legal tender during the past 1.5 years, it has come under heavy fire. There have been concerns raised regarding the country’s ability to repay its debt due to its exposure to the volatile asset class. However, the nation had paid out a $800 million bond earlier this month, including with interest. President Nayib Bukele retorted to all the prior reports casting doubt on El Salvador in his statement, saying: “In the past year, almost every legacy international news outlet said that because of our #Bitcoin bet, El Salvador was going to default on its debt by January 2023 (since we had an 800 million dollar bond maturing today). Literally, hundreds of articles.”
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