El Salvadorcloser to realizing the idea of creating a “Bitcoin City”. According to reports, crypto exchange Bitfinex will issue the country’s long-awaited “volcano tokens” in 2023 this year.
Volcano token or volcano token is basically a Bitcoin bond issued using blockchain technology. The token will be traded on the Bitfinex exchange. Bitfinex’s Paolo Ardoino explained that the $1 billion Bitcoin bond proposed for the country has seen sufficient demand.
In December last month, El Salvador passed the controversial “Digital Assets” law. Under this law, it was decided that the country would create a digital securities regulator. It will also need to prepare prospectus for potential investors of the $1 billion bond.
Ardoino stated that Bitfinex will also receive permission to trade “securities”.
Volcano Bonds and Bitcoin City
El Salvador plans to use half of the $1 billion raised from the sale of volcano tokens to build a tax-free beach town called Bitcoin City. This city is basically bitcoin The country will be using nearby volcanic geothermal energy to mine.
Under President Nayib Bukele’s plan, El Salvador will set aside an additional $500 million to buy Bitcoin as part of the country’s reserves. Any future increase in the value of the digital asset will be shared with users.
The South American country, which officially adopted BTC about 1.5 years ago, faced many criticisms. As a matter of fact, despite these criticisms, the country still manages to comply with its international debts and other agreements.