Everything you wanted to know about ES Volcano Bond and were afraid to ask!

[Cryptogames999]

Coming back strictly own topic: apparently something is moving in the right direction regarding the Volcano Bond.

The law has been approved by the parliament and it will be soon enacted.




So it's like a comprehensive framework to be applied to the digital assets as explained in the detailed thread.

It's nice to see good things in 2023 and even Bitcoin showing some improvements than last year. I hope you had a great move in this year.
What do you say if the Bitcoin price drops this year than last year and what will happen to the Volcano bonds too?

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[JayJuanGee]

Coming back strictly own topic: apparently something is moving in the right direction regarding the Volcano Bond.

The law has been approved by the parliament and it will be soon enacted.

So it's like a comprehensive framework to be applied to the digital assets as explained in the detailed thread.

It's nice to see good things in 2023 and even Bitcoin showing some improvements than last year. I hope you had a great move in this year.
What do you say if the Bitcoin price drops this year than last year and what will happen to the Volcano bonds too?

Of course, the bonds are issued long term, so if the BTC price drops prior to the ability to issue then there would be a low subscription rate, and but if they reach their targets in regards to the subscription, then the terms for servicing the bonds are not very onerous, and El Salvador would be able to use the money for the stated purpose.  It seems that a BIGGER problem would be present if the BTC price continues to drop and fails to rally for several years.  The bond terms are not unfavorable to El Salvador, so El Salvador could pay the bonds over time, but it would be better for everyone if BTC prices would at least go up 6% or so per year.. and better yet if they were to go up more than that... accordingly, it seems way better to issue these bonds on a dip in BTC prices rather than prior to a dip, and yeah of course, we do not know if the price will stop dipping, so that is one of the risks that both El Salvador takes and also anyone who buys into such a bond that already has a stated purpose that involves investing in bitcoin and bitcoin-related projects.

[DiMarxist]

El Salvador’s Bitcoin City Wins an International Design Award Good things in the world are achieved in a gradual process and not a hurry manner. Bukele, El Salvador president propagates it bitcoin city since 2021 but many criticized. And today the bitcoin city has started receiving international award. This is a good news in the year.
The city will be built at the Southern Part of Latin American and the

The Volcano Bond Energy of the Bitcoin City

The Volcanoes that are around the city will be used to power the city with electricity.  $1 billion bitcoin were estimated to build the city and as for now the authority has gathered $54 million worth of bitcoin.

[fillippone]

Just to let you know this thread has been translated into Romanian by my friend Gazetabitcoin:

• Everything you wanted to know about ES Volcano Bond and were afraid to ask!
  
  • Romanian Translation by Gazetabitcoin: Tot ce voiai să știi despre Obligațiunile din ES dar îți era teamă să întrebi!

[concept2]

...

The idea of the first-ever fully digital bond in the world blew my mind, bro! It's insane how they're going to trade that bad boy on Blockstream AMP. That's a platform used for digital assets on the Liquid Network. This means the whole trading activity will be entirely digital, making it cheap as hell for the issuer and the investors, yo! It's dope that they're letting peeps purchase it with USD, BTC, and USDT, making it more accessible to everyone. But, let's be real, we still don't know what the heck is gonna happen with this project. I'm optimistic, but like, lowkey scared too. Only time will tell if this bond will be a banger or a bust.

Speaking of this whole Bitcoin thing, it's wild that El Salvador is all about it. It's like they're trying to start a whole new ball game in finance. But, building a whole new city just to promote Bitcoin? That's some next level cray. Like, there are so many other things they could use that money for, you feel me? Also, this whole citizenship thing is sus as heck. Like, are they really using citizenship as a commodity now? That's shady AF. Props to El Salvador for taking a risk and doing something different, but they need to make sure they're not screwing over their own people in the process.

[fillippone]

I don’t know how, but I missed one news over the last few days:
World’s First Bitcoin Bonds Receive Regulatory Approval in El Salvador

El Salvador’s long-planned bitcoin (BTC) bonds have inched closer to reality after apparently receiving regulatory approval for an early 2024 issuance, the country’s bitcoin-focused office posted on Tuesday.

I understand that the bond characteristics have not been made available yet. However, I have seen multiple news sources reporting that the bond has a 6.5% coupon and a 10-year time frame. Probably these are the same characteristics of the then advertised Volcano bond. Personally, I find it unlikely that anyone would buy a bond at such a high price. The 10-year yield for a plain vanilla El Salvador debt is currently at 11%, so I believe that a bond with exotic features like this should have a much higher yield