El Salvador Grants Greengo Capital Crypto Management License
In the first quarter of 2024, El Salvador is all set to issue its pioneering Bitcoin bonds, a strategic move to further its commitment to cryptocurrency. Named “Volcano Bonds,” these instruments are integral to financing the “Bitcoin City,” which is to be powered by geothermal energy from the Conchagua volcano. The project reflects President Nayib Bukele’s vision of a tax-free zone dedicated to Bitcoin enterprises, aiming to attract substantial global investments.
El Salvador’s innovative stride began in 2021 when it became the first country to adopt Bitcoin as legal tender. This move, primarily aimed at easing remittances and enhancing financial inclusivity, set the stage for its subsequent ventures. The country’s journey continued with significant regulatory progress in November 2022, establishing a comprehensive framework for digital asset management and issuance through the “Digital Asset Issuance” law.
The “Volcano Bond,” projected to raise a substantial $1 billion, will be used not only for the establishment of the Bitcoin City but also for the development of a Bitcoin mining infrastructure. This endeavor is seen as a step towards a sustainable financial ecosystem, leveraging the country’s geothermal resources for eco-friendly Bitcoin mining. With an annual return of 6.5% and a pathway to expedited citizenship for investors, these bonds offer an attractive proposition to global investors.
El Salvador’s commitment extends to Bitcoin-driven foreign direct investments, with significant initiatives like the 241-megawatt Bitcoin mine by Volcano Energy, indicating a strong move towards sustainable energy practices. This project, significantly funded by commitments including those from Tether, promises to boost the country’s position in the global Bitcoin ecosystem.
In a groundbreaking move, El Salvador also introduced the “Freedom Visa,” a citizenship program that accepts a $1 million investment in Bitcoin or Tether. This program is designed to attract High Net Worth Individuals and contribute to the nation’s economic development and prosperity.
Despite initial skepticism, El Salvador’s bold financial experiments have begun to pay off. Its bonds have seen surging interest and investments from major financial entities, reflecting a growing confidence in the country’s financial health and future. This success story is seen as an inspiring model for other countries considering innovative financial solutions and has sparked broader discussions on the potential for Bitcoin to reshape the economic landscape in Latin America and beyond.
