Tag: El Salvador

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El Salvador’s ‘Volcano Bond’ Gets Regulatory Approval, Aims to Launch Early Next Year

El Salvador’s innovative Bitcoin (BTC) “Volcano Bonds” have received regulatory approval and are scheduled to be launched to the public in the first quarter of next year.

El Salvador’s National Bitcoin Office (ONBTC) says the country’s Digital Assets Commission (CNAD) approved the bonds after nearly two years of delays.

El Salvador’s pro-crypto president, Nayib Bukele, first announced in November 2021 that the Central American country would issue the bonds.

They were originally expected to launch in early 2022, but Bukele delayed them indefinitely when the BTC price fell.

The Bitcoin bonds, the first of their kind in the world, will be traded on Bitfinex Securities, according to ONBTC.

It’s not the only recent Bitcoin news for El Salvador: last week, the country launched a new “Freedom Visa Program” for high-net-worth individuals willing to shell out $1 million in BTC or USDT for a passport.

Bukele has long been a supporter of Bitcoin. El Salvador has more than $130 million in BTC, and the main crypto asset is recognized as legal tender in the country.

The president also says the country has “no intention of selling” its Bitcoin, despite BTC’s price surge this year.
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El Salvador will buy Bitcoin every day starting tomorrow, says president

El Salvador will start buying bitcoin every day, according to Salvadoran President Nayib Bukele. Since adopting the cryptocurrency as legal tender, El Salvador has purchased around 2,381 bitcoins for its treasury.

El Salvador will buy Bitcoin every day

The president of El Salvador, Nayib Bukele, announced this Thursday on Twitter that his country will buy a bitcoin every day starting tomorrow.

Following Bukele’s announcement, Tron founder Justin Sun said he will do the same, tweeting: “We remember @nayibbukele’s initiative to buy bitcoins daily. We will also buy one bitcoin every day starting tomorrow.”

Bukele was undeterred by the recent turmoil surrounding bankrupt cryptocurrency exchange FTX. On Sunday, the Salvadoran president explained in a tweet:

FTX is the opposite of Bitcoin. The Bitcoin protocol was created precisely to prevent Ponzi schemes, bank runs, Enron, Worldcom, Bernie Madoff, Sam Bankman-Fried... bailouts and wealth transfers. Some understand, others still don't. We are still early.

El Salvador adopted bitcoin as legal tender along with the US dollar in September last year. Since then, the country has bought around 2,381 bitcoins for its treasury. President Bukele is a strong supporter of cryptocurrencies. He recently attributed El Salvador’s tourism recovery to BTC, surfing, and reduced crime.

However, a survey conducted in October indicated that almost two-thirds of the population have a negative impression of bitcoin, and only a quarter of Salvadorans use the cryptocurrency.

The International Monetary Fund (IMF) has also warned El Salvador about making Bitcoin legal tender, claiming that the costs of making BTC a national currency outweigh its potential benefits. However, the government of El Salvador has rejected the IMF warning and continues to adopt bitcoin.

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El Salvador buys The Dip, has 2,381 Bitcoins in the Treasury

El Salvador’s President Nayib Bukele announced that the country has purchased an additional 80 BTC, resulting in a total treasury of 2,381 BTC valued at around $46.1 million.

El Salvador bought the dip and acquired 80 BTC at an average price of $19,000.

Two days ago, MicroStrategy also bought the drop worth 480 BTC.

Nation-states and institutions remain dollar-averaged while a contagion effect upsets a rocky bear market.

President Nayib Bukele of El Salvador announced last night that the country bought the dip with another 80 BTC added to the national treasury for an average cost of $19,000.

In total, El Salvador has a total bitcoin hoard of 2,381 BTC, currently valued at around $46.1 million. The nation-state has been slowly accumulating bitcoin since its first bitcoin purchase on September 6, 2021, when it purchased 200 BTC and became the first country in the world to hold bitcoin on its balance sheet three months after declaring bitcoin currency.

Lately, Bitcoin and the cryptocurrency ecosystem in general have witnessed what is known as “contagion” in which cascading failures of one institution mixed with another amid market corrections. Due to this effect, institutional and state holders in the bitcoin ecosystem have come under scrutiny for continuing to hold bitcoin under the circumstances, with El Salvador being one of the criticized holders.

Likewise, Michael Saylor was interviewed to discuss whether or not he regretted the bitcoin strategy his software analytics company, MicroStrategy, chose to adopt. In light of Bukele, however, Saylor continues to buy on the downside and remains steadfast in the spirit of dollar cost averaging: the continuous accumulation of an asset over time, regardless of price.

As prominent figures like Bukele and Saylor continue to accumulate large amounts of bitcoin over time, they will continue to be criticized when the price fails to rise. However, the important thing to note is that they are not trading bitcoins. If the goal was to buy and sell bitcoins in a short period of time, criticize the bad timing. But as things stand, El Salvador and MicroStrategy clearly continue to look at a longer time horizon than is generally believed.