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El Salvador's Bitcoin Experiment: Updates from Volcano Bonds and Bitcoin Beach

 


A year ago, El Salvador introduced Bitcoin (BTC) as its currency and legal tender. This makes the small Central American country a global pioneer. Bitcoin bonds – also known as Volcano bonds – were first announced in November 2021 and raised $1 billion. The aim is to use half of the investor funds to build up the " Bitcoin City" and invest the other half in BTC.


Will the Volcano Bonds fizzle out?

The bonds should already be issued in March 2022. However, volatile prices and the Russia-Ukraine war gave reason to postpone this date again and again. The goal of issuing the Volcano Bonds by mid-2022 at the latest was missed.


Bitfinex and Tether CTO Paolo Ardoino then announced that the Bitcoin bond issuance will be delayed . Bitfinex plays a special role in El Salvador: The crypto exchange was selected as the sole provider for the Volcano bonds. Also, Bitfinex supports crypto education in the country.


In May , Ardoino said Bitfinex was waiting for El Salvador's Congress to pass a digital securities law that would pave the way for Bitfinex to be licensed as a technology provider. At the time, he predicted that the token would be launched in mid-September.


"If the law is passed by September, I would assume that it will reasonably take two to three months for everything else to be in place," Ardoino added .


So when will the Volcano Bonds come? According to Stacy Herbert, who runs the venture fund “El Zonte Capital”: “Soon” .

And how is Bitcoin City doing?

On August 26, President Nayib Bukele commented on the project : “El Zonte is known to many as Bitcoin Beach; We will repair an area of ​​15,000 square meters, where there will be a shopping center, parking lots, a beach club and a sewage treatment plant to revitalize the area.” By the way, Bitfinex is also invested here.


Bukele confirms that the El Salvador government's investment is just over US$203 million . Bitcoin Beach won't be the only tourist destination to benefit from the investments: Surf City's beach, commonly known as El Tunco, is also set to be upgraded . Cycle paths are to be improved, a new drainage system integrated and 14 bridges built.


“ This year we will expand 21 kilometers of the Littoral Road to four lanes. And we will also do it with hydraulic concrete, which is more expensive than asphalt but lasts much longer.”


According to Bukele, the renovation work should start later this year and will make Bitcoin City known as a tourist hotspot in the long term. You can find out more about El Salvador's tourism plans here .


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All information contained on our website has been researched to the best of our knowledge and belief. The journalistic contributions are for general information purposes only. Any action taken by the reader based on the information found on our website is entirely at their own risk.

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