El Salvador, the country that pioneered the adoption of Bitcoin as a legal tender, announced that its Volcano Bitcoin bonds have just been approved by the Digital Assets Commission and are set to launch in the first quarter of 2024.
Nonetheless, El Salvador’s ambitions extend beyond that; the country now wants to create a “Bitcoin City,” a futuristic hub for innovation and development, where everything will run on Bitcoin and renewable energy.
The City will feature an airport, residential and commercial areas, as well as a central building mimicking the Bitcoin symbol.
El Salvador’s Bitcoin City will be funded by the Volcano Bonds, which are expected to raise $1 billion. These bonds will be issued on the Bitfinex Securities Platform, a licensed site for trading blockchain-based securities.
The Volcano Bonds will have a 10-year maturity and a 6.5% coupon. Half of the proceeds will be set aside for paying off El Salvador’s external debts, while the other half will fund the Bitcoin City project and Bitcoin investment.
These actions build upon El Salvador’s earlier step related to Web3. In October, the country partnered with two notable companies; Tether, one of the largest stablecoins, and Luxor Technology, a leading Bitcoin mining software provider, to build a 241 MW power plant — “Volcano Energy” in Metapán.